Keras Resources Share Discussion Threads

[lamanai] 05/5/2016 08:26

Heard from DR and the figures in the placing RNS are correct. For PoW AISC is AUD900 including the 22%. Fair to say that DR is eager to see it realised, and so am I. If we get 25,000 oz from PoW next year, that is a very healthy gross profit of £10m on PoW alone. Plus the rest. And it should all kick in earlier than that.

Well done Ed for spotting this.

[laptop15] 04/5/2016 17:50

Took the opportunity to top up again before this moves upwards again :))

[laptop15] 04/5/2016 10:45

Yes 3p by year end!! This could definitely be achievable :))

[the count of monte_cristo] 04/5/2016 08:24

gold price back above 1300 US$

[the count of monte_cristo] 04/5/2016 07:48

Laptop...what is your target frame for 3p +? Next 6 months?

I am looking for 5 to 6p within 12-24 months.

[laptop15] 03/5/2016 22:23

Looks like a lot of those placing shares are still being sold plus some warrants....once there gone then this should shoot back up to 1.50p - 2p range imo :))Pity some of them aren't prepared to dtick it out for the long term as this has a target of 3p +.

[rec0very stock] 03/5/2016 13:46

Ed,

I see where the confusion arises. Current open pit production gives a net of $350 to KRS. 15 KOz of that is enough to underpin current mcap. The open pit is exceptionally low risk. PoW is still a long way off - H1 2017. There are more risks involved not least what happens to the timbers when they dry out.

[edgein] 03/5/2016 11:08

Lamanai,

I cannot remember where I heard the AU$600 approx per ounce for Lindsay and it was probably only in reference to the 75% of the reserves for the surface pit rather than LOM including the parrot feathers underground reserve. Either way these are only estimates given by the company at present and offer significant margins at the current gold price and extremely low mining and processing costs unique only to SW Oz. Lindsay's royalty is likely to be something like 2% just for processing costs its a KRS favoured profit share on gold sales similar to wycheproof.

Regards,
Ed.

[lamanai] 03/5/2016 09:57

You are quite right Ed, the 15 April RNS does state that the AUD900 includes the 22% royalty. I must admit that I hadn't spotted that either. I'm not too sure that they have that right, given that the RNS of 1 Feb indicated that the 22% royalty was not included in that figure and there has been nothing to announce such fantastic news. Clarification needed I think, but I'm working on the original costings.

I think I must have taken my eye off the ball a little, as I hadn't come across the AUD600 figure for Lindsays's Project. Where is that from? The most recent presentation nominally put AISC at AUD850 for Lindsay's before royalty is added.

Notwithstanding the above, I believe that the mcap is extremely well supported and has a lot further to go.

[edgein] 03/5/2016 09:16

RS,

You're wrong on the net that KRS receives:

"The POW mine forms part of the greater Grants Patch mineral lease, with a resource of 154,000t at 8.0g/t and an exploration target of 500,000t at 10g/t for 160,000 oz. This mine is the key asset in the Company's gold portfolio, with a planned underground production rate of 15,000 to 20,000 ounces per annum. The Company will need to re-establish shaft collar, de-water and refurbish shaft prior to commencing mining. The broken stocks in the stopes will allow for rapid re-start with all product to be treated at Norton's 3.5mtpa Paddington Mill, 25 km from the deposit. At an average steady state production rate of 17,500 recovered ounces per annum the estimated life of mine ('LOM') AISC (including the 22% royalty) is less than A$900 per ounce. At the current gold price of A$1,650 per ounce the POW mine will produce pre-tax cashflows of approximately A$1 million per month."

The costs of "less than" A$900 includes the 22% royalty to Norton. Its also why costs are around A$600 for Lindsay. When you take into account the 10% management fee to KRS at current gold price that $170, +$70 to KRS on the profit split over $1600 per Oz it works out about the same or slightly above the grants patch deal with Norton. So as the gold price increases beyond A$1700 this is a real cash cow at Lindsay, but $800/oz net from Grant's patch assets not modest either.

That is why £15m cap on potentially A$24m free cash flow this year and no debt makes this very very cheap. I wouldn't be surprised if gold is above US$1400 by year end, perhaps even over $1500 the way this year has went so far.

Regards,
Ed.

[the count of monte_cristo] 03/5/2016 08:11

1709 now nocky44

[nocky44] 02/5/2016 18:30

Keras Twitter update
It keeps getting better, Mining News this morning - "the local spot gold price close to $1700/oz, its highest level in almost two months".

[the count of monte_cristo] 02/5/2016 17:33

Cyberpub...its a decision YOU need to make. If YOU think its too toppy then you either dont buy or sell your shares (if you own any).

[rec0very stock] 02/5/2016 14:06

Ed,

You have forgotten the 22% royalty payment. At A$1600 the net to KRS is A$350 per oz.

The open pit 15kOz pa is about as low risk as it ever gets, this alone more than underpins the current mcap.

[edgein] 02/5/2016 13:06

Cyberbub,

$900 Ozzie an ounce all in and $800 net to KRS at $1700 Ozzie an ounce is $20-24m pa, obviously Lindsay will be slighly better than that with the management fees paid to us and 70% over $1600/Oz. That's on 30,000 oz pa, that may be exceeded depending on exact start up of Lindsay and PoW. £15m still looks very cheap here, especially with the way gold is going and how fast this one is adding production. Already at 1427 Oz from the first month and just two targets online, the best has yet to come.

Regards,
Ed.

[cyberbub] 02/5/2016 09:11

Is a £15M market cap not slightly toppy for a company which is still only producing a very small amount? I can appreciate that the target is much higher next year, but "a year is a long time in junior miners"...

[tom111] 29/4/2016 11:06

Im sure we have reached the bottom now the recovery seems to be picking up,1.50 would be the next target for me

[someuwin] 29/4/2016 10:53

Looks like placing shares have worked though.

Next leg up starting.

[novicetrade68] 29/4/2016 10:47

Looking perky today and gold now A$1670 which - if remaining at those levels - should give KRS a nice multiplier effect on their gold sales.

[edgein] 29/4/2016 09:14

Wow look at gold go, its been a very good year for gold so far. Those predicting a return to old highs at the start of the year might not be too far off at this rate. Up significantly so far this year and its only April.

Regards,
Ed.

[laptop15] 28/4/2016 22:36

Yes nocky i noticed noricum gold got tipped there recently in sharepickers i think! Could be worth investing in! I have it on my watchlist...noticed a good rise today!Think KRS has bottomed out now and charts look like its set to move higher and push 2p levels.

[nocky44] 28/4/2016 21:36

Copied from ARS forum, looks very similar set up to KRS dig it,load it, ship it, Q3 production, just an observation , thought I wud share GLA
Another quiet one here, stabilizing before moving higher I guess, given me time to look at other stocks, it was Hornblower who brought ARS to my attention and up to now its been my biggest success in 20 years of trading, I have taken a punt on Noricum Gold may be worth looking at if anyone want another ARS like stock they have 1 million tonnes copper and 6 million ounce of gold, production q3 this year, looks like a great buy at .22p , thanks again Hornblower

[nocky44] 28/4/2016 21:32

Another quiet one here, stabilizing before moving higher I guess, given me time to look at other stocks, it was Hornblower who brought ARS to my attention and up to now its been my biggest success in 20 years of trading, I have taken a punt on Noricum Gold may be worth looking at if anyone want another ARS like stock they have 1 million tonnes copper and 6 million ounce of gold, production q3 this year, looks like a great buy at .22p , thanks again Hornblower

[the count of monte_cristo] 28/4/2016 17:09

yeah gold doing well and the aussie gold price also

[tom111] 28/4/2016 16:22

gold heading up 1263