Keras Resources Share Discussion Threads

[apotheki] 26/9/2024 11:10

SP Angel . Morning View . Metals extend gains on positive reaction to China fiscal stimulus

Keras Resources* (KRS LN) – 2.75p, Mkt cap £2.21 – Interims

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)

Keras Resources has published its interim report to end June 2024

The team concluded the jv with PhoSul Utah LLC and the acquisition of a new site 8 miles north of Delta in Utah for along with the transfer and construction of all processing infrastructure from Spanish Fork.

The new integrated processing facility cold commissioned in June with hot commissioning completed by end June.

The 2024 mining season started with ~7,500t due to be mined this year.

The new jv and facilities with PhoSul® should enable faster and greater growth in sales for the organic rock phosphate.

Revenue rise to £556k from £397k yoy from the sale of organic rock phosphate from the Diamond Creek mine in Utah, USA.

Revenue from the manganese operations came to £29,000 for advice to the Togo government which has taken over control of the Nayéga manganese mining project in Togo.

Production costs rose to £440k from £44k

Administrative expenses fell to £492k from £686k as management up moved to develop new facilities to feed the new jv with Phosul.

Finance costs of £80k fell from £106k.

There was a positive £82k gain foreign exchange translation vs £29k yoy.

The total comprehensive loss came to £354k vs £226k yoy.

The company has £1.5m of promissory and convertible notes repayable in 2028.

Conclusion: We expect Keras to report a substantial uplift in sales from here on through the direct sale of organic rock phosphate and via the new jv with PhoSul® in the US.

*SP Angel acts as nomad and broker to Keras

[rec0very stock] 26/9/2024 11:02

Nothing surprising or spectacular in the Interims, but their publication should clear the way for the Broker note forecasts and the IR campaign we spoke about at the AGM to get going in the next few weeks.

[apotheki] 26/9/2024 07:55

Interim Results

Keras Resources plc (AIM: KRS) announces its unaudited half year results for the six months ending 30 June 2024.

Overview

· Conclusion of PhoSul Utah LLC joint venture ("Phosul JV"), the acquisition of the property in Sutherland, 8 miles north of the town of Delta, Utah ("Delta Facility") on 22 January 2024 and the transfer and construction of all processing infrastructure from Spanish Fork to Delta;
· New integrated processing facility cold commissioned on 3 June 2024 and hot commissioning completed on 28 June 2024;
· Loss increased from £255,000 to £436,000 largely due to increased non-capital items related to the move to the Delta Facility and the exclusion of the extra-ordinary items in the comparable period in 2023;
· 28% increase in sales of 4,106 tons compared to period ended 30 June of 2023 of 3,190 tons;
· 2024 mining season has commenced with an estimated 7,500t to be mined for the season;
· Long term fundamentals of the organic fertiliser marker remain robust; and
· Move to produce PhoSul®, a direct application product in addition to the existing dry rock phosphate fertiliser blend products underpins the Company's trajectory to becoming North America's premier organic phosphate producer.

Graham Stacey, Keras Chief Executive Officer, commented, "2024 has been a transformative year for the Company with the move to the Delta Facility, the Phosul JV and the strategic diversification of our product range to ensure we are able to produce into the robust North American organic fertiliser market with a direct application granular product. For the rest of the year, operationally our focus will shift from infrastructure development to commercial production growth and from a product development perspective we will now focus on liquid organic product(s) with higher phosphate availability, building on our research carried out in 2023."

[pinecone] 23/9/2024 11:38

Once again the brokers have not checked their numbers!

“The deal with the Togo government should give nearly $0.9m a year at a price of $3.5/dmt for manganese and production of 7,480tpa equating to some $2.6m over three years.”

7480 tonnes per “month” does equate to $2.6million in three years at this starting rate!

If we/ Togo can move the rate to 25,000 per month we get to $3 million per year!

They are just cutting and pasting!

PC

[apotheki] 23/9/2024 11:10

SP Angel . Morning View .

Keras Resources* (KRS LN) – 3.20p, Mkt cap £2.58m – Diamond Creek Phosphate Project, USA - (Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)

Keras Resources reports the restart of mining at its Diamond Creek Phosphate Project, Utah, USA.

The mining campaign will run till end November, eg before the snow sets in.

The Delta Facility is currently operating at full capacity, on a single shift basis.

Mining starting later than usual due to management focus on the Delta Facility construction, commissioning and production ramp-up.

The mine has already produced 3,000t with plans to mine a further 3,000-5,000t of rock phosphate by the end of the mining campaign.

The plan is to truck this material to a laydown area at Diamond Creek with crushed run-of-mine ore progressively hauled to the Delta Facility before winter snowfall.

This material will be milled to 10 mesh and 50 mesh for direct sales and will also provide feed for the new granulator plant to produce 240SGN PhoSul®.

Phosul is currently selling for $40 per 25lb (11kg) bag on Amazon in the US or £31 in the UK through theseedsupply.com.

The mining campaign will ensure sufficient ore for in-house sales as well as feed to the joint venture with PhoSul which 3,500-4,000t of PhoSul® this year.

Power: Connection to 3-phase power will replace 600kW of diesel generation as soon as is practicably possible reducing power costs and CO2 emissions.

Manganese: we await news on the restart of the Nayéga manganese mine by the government of Togo where Keras holds a 1.5% royalty advisory fee plus 6.0% of gross revenue from the mine over the lesser of 3.5 years or 900,000t of beneficiated manganese ore sold..

The deal with the Togo government should give nearly $0.9m a year at a price of $3.5/dmt for manganese and production of 7,480tpa equating to some $2.6m over three years.

Manganese ore prices for 38%min FOB South Africa have slipped to $3.65-3.80/dmtu from in July to $4.07-4.22/dmtu from 3.47-3.62/dmtu at end June.

We note Manganese concentrates are subject to a 25% import tariff into China from this year.

The recent jump in manganese prices should be good for Keras assuming the government of Togo starts production from the Nayéga manganese mine.

*SP Angel acts as nomad and broker to Keras

[the skipper] 23/9/2024 09:24

I guess they are waiting on the broker to get a note out. Hopefully later today.

[markyess] 23/9/2024 08:47

But we're still waiting for the more important financial projections as indicated at AGM and the prior RNS.

They're not really helping the market to help them/us

[apotheki] 23/9/2024 08:20

Operations Update - Diamond Creek Phosphate Project, USA

Keras Resources plc (AIM: KRS) is pleased to provide an update on operations from its high-grade Diamond Creek organic rock phosphate mine ("Diamond Creek') and wholly owned Delta integrated processing facility ("Delta Facility") in Utah, USA.

· The 2024 mining campaign is now underway and will run through till end November 2024; and
· The Delta Facility is currently operating at full capacity, on a single shift basis.

The Diamond Creek mining campaign is now underway, starting later than usual due to focus on the Delta Facility construction, commissioning and production ramp-up. The 2024 campaign plans for production of between 6,000 and 8,000 tons of which 3,000 tons to date has already been mined and hauled down to the laydown area at Diamond Creek. Crushed run-of-mine ("ROM") ore will progressively be hauled to the Delta Facility prior to the onset of winter snowfall for milling to 10 mesh and 50 mesh for direct sales as well as feed for the recently commissioned granulator plant to produce 240SGN PhoSul® with the Company's Phosul Utah LLC joint venture ("JV") partners. This will be the first winter that all ROM is stored in a dry, under-roof environment which will significantly benefit the beneficiation process.

Since commissioning the Delta Facility, additional minor plant modifications have continued to improve both consistent overall production and product quality and is now running at full capacity allowing the JV to now market PhoSul® granulates into the autumn planting season.

Graham Stacey, CEO of Keras commented, "Ramping up of our Delta Facility to full capacity is the next milestone achieved by the team in Delta in what has been a transformative year to date. The new integrated circuit is far more efficient than the previous plant at Spanish fork and has allowed us to continue to produce and sell our dry 10 mesh and 50 mesh dry rock phosphate products as well as producing PhoSul® granulated fertilizer in collaboration with our JV partners PhoSul LLC. We believe the additional product diversification brought by marketing PhoSul®,a finished product for direct farm application rather than a blend constituent through third-party blending distributors will open new niche markets in the robust North American organic fertiliser sector.

"The continuation of mining at Diamond Creek during the 2024 summer season to generate ore for both in-house sales as well as feed to the PhoSul Utah JV has progressed well to date and will continue through to end-November which will set us up for beneficiation and sales in Delta during the winter season through to May 2025 when mining will recommence.
The Delta Facility has brought the business stability we've been looking for since acquiring 100% in Falcon Isle which we will continue to build on with both Falcon Isle products and PhoSul Utah JV granulate sales."

[stockriser] 17/9/2024 08:58

PC - TOGO - It would be a welcome shock though ;-)

GL SR

[pinecone] 16/9/2024 15:22

Added a few this afternoon, surely the update on our current and future prospects must be due in the coming weeks!
Hopefully, it will give us a clearer picture of where we are going, may even get a nod to other opportunities within the core of our business!
Would be shocked to finally hear a positive result on Togo!

PC

[tim000] 02/9/2024 19:05

I’ve been adding a few more shares, including today. Recovery’s feedback from the AGM was that cashflow should cover all known liabilities going forward. Nothing of course is certain, but if that’s the case then the company must be expecting to generate cash from operations of at least three-quarters of a £1 million next year to cover the final payment of $800k, plus any capex. At the current share price, that alone puts the company on a very low forward p/e. The promised broker’s note later this month (with profit forecasts guided by the company) could be a transformational event.

[the skipper] 02/9/2024 17:59

Nice to see some buying today. Hopefully the start of a build up to some operational and financial news.

[citys2874] 28/8/2024 16:06

News incoming

[citys2874] 28/8/2024 16:06

"The move to Delta has been a significant shift in our operating model, we look forward to settling into our new facility, optimising operations and growing our sales without the distractions we've experienced to date, and delivering profitability to our shareholders. We look forward to announcing our output and profitability forecasts during the coming weeks." SEE THE LAST RNS

[citys2874] 28/8/2024 15:36

Blakesmith you drunk again....looks like your wife is not giving you any, i don't blame her with the language you use on here, grow up and learn how to speak or write without the use of foul language......change your ways ....anger, jealousy and hate is not good for you .....learn to love and let go!!

[citys2874] 28/8/2024 13:48

UP 5 PERCENT NOW

[citys2874] 28/8/2024 11:17

could well double quite easily over the next few days

[citys2874] 28/8/2024 11:16

worth buying today output and profitability forecasts due any day now

[theoriginalwonderstuff] 27/8/2024 15:50

Here we go again... The drift down...

[theoriginalwonderstuff] 14/8/2024 23:39

What news are you expecting?

[theoriginalwonderstuff] 14/8/2024 23:38

What news are you expecting?

[citys2874] 13/8/2024 09:27

news due in any day now

[citys2874] 13/8/2024 09:26

expect this to bag easily very soon

[apotheki] 02/8/2024 11:47

SP Angel . Morning View .

Keras Resources* (KRS LN) – 4.00p, Mkt cap £3.22m – Keras starts commercial production of PhoSul® organic phosphate fertilizer granules in Utah, USA

(Keras holds 100% of the Diamond Creek phosphate mine in Utah, USA)

We are publishing an amended comment on Keras as the jv with Phosul plans to sell 3,500-4,000t of PhoSul® this year and not 10,000t which the jv could, in theory produce

Keras Resources reports the start of commercial production of PhoSul® granules at its Integrated Delta processing facility in Utah.

The Phosul joint venture expects to produce somewhere between 3,500-4,000t of PhoSul® this year and not 10,000t which the jv could, in theory produce.

Revenue: The jv could, in theory, sell $24.7m - $30,7m of product next season but if we assume $1/kg for bulk sales then the Keras jv could sell $7.7-8.8m of product this year.

The plant has moved to commercial production after some optimisation and certain upgrades to achieve consistent production with support from contractor Burningham Enterprises Group and jv partner PhoSul LLC.

PhoSul® solves Phosphorous run-off and water resource contamination and has been developed to improve P2O5 availability to crops with field tests showing significant yield and quality improvements over other rock phosphate products.

The joint venture plans to produce between 8,000-10,000t this summer with Keras’ mine selling rock phosphate to the jv building up to steady-state sales of approximately 10,500tpa in addition to internal sales of approximately 6,500tpa.

Phosul® consists of 80% of 50 mesh ore from Keras’ Falcon Isle Diamond Creek mine therefore 10,500t could produce 13,125t of Phosul® assuming no losses.

Plant capacity: 5tph with a 520t/month running a single shift operation.

Double shift capacity ~ 920tpm of saleable bulk Phosul® granules expected in Q4.

The Phosul jv should consume ~10,500tpa of 50 mesh phosphate when running at steady state.

Keras plans to mine somewhere between 8-10,000t of rock phosphate this summer to cover the Phosul® granulator feed and Keras’s own sales through May/June 2025 though around half of this will go to Keras’ own sales and not into the Phosul joint venture.

Note: Keras’ Diamond Creek can produce ~25,000tpa of rock phosphate enabling potential to potentially move to higher production of Phosul®.

Pricing: Phosul® granules are currently quoted at $40 for a 25lb bag on Walmart or $70 / 50lb bag on ebay in the US (equates to US$3,086/t at $70/50lb bag) with PhoSul LLC producing bagged products for the retail market from their Sugar City, Idaho plant.

The jv will only produce a bulk Phosul® product in the short-term implying a lower price per kg and not bagged product for the retail.

The hxxps://www.phosul.com/ website highlights a 2020 crop study:

“The control plot (no fertilizer added) yielded 6.47 t/ac (fresh weight) and 3.78 t/ac dry weight, while Phosul yielded (on average) 18.64 t/ac (fresh weight) and 11.80 t/ac dry weight.

An increase of 12.17 t/ac (wet) and 8.02 t/ac (dry) was realized in this field.

At $125/ton, a return of $821/ac (gain – product cost @500 lbs/ac) makes Phosul a great investment!

The producer plans to re-apply Phosul after his first cutting.”

Stockpile: ~4,250tons of 50 mesh product which will cover the operation through 2024 with all mining and crushing costs already expensed.

The jv will build a stockpile of PhoSul® at the Delta Facility.

“Organic granulation requires a very specific formula and the blending of the PhoSul® ingredients in the design ratio, supplemented with moisture, an organic binder and a dust control agent in the overall product blend has been a challenging process which we will continue to optimise with strong support from our PhoSul LLC JV colleagues.

An important part of our transition to sales will include moisture and hardness testing as well as 240 size guide number ("SGN") analysis on an ongoing basis.

Our intention is to produce 240SGN product in bulk in the short-to medium-term, with the option to produce 1 ton bags should demand dictate.”

Power: Connection to 3-phase power will replace 600kW of diesel generation as soon as is practicably possible reducing power costs and CO2 emissions.

Manganese: we await news on the restart of the Nayéga manganese mine by the government of Togo where Keras holds a 1.5% royalty advisory fee plus 6.0% of gross revenue from the mine over the lesser of 3.5 years or 900,000t of beneficiated manganese ore sold..

The deal with the Togo government should give nearly $0.9m a year at a price of $3.5/dmt for manganese and production of 7,480tpa equating to some $2.6m over three years.

Manganese ore prices for 38%min FOB South Africa jumped in July to $4.07-4.22/dmtu from 3.47-3.62/dmtu at end June.

Note Manganese concentrates are subject to a 25% import tariff into China from this year.

The recent jump in manganese prices should be good for Keras assuming the government of Togo starts production from the Nayéga manganese mine.

*SP Angel acts as nomad and broker to Keras