Keras Resources Share Discussion Threads

[the count of monte_cristo] 09/5/2016 11:31

Thanks ryan83, sounds good!

[ryan83] 09/5/2016 10:22

Nayega is still in Togo, KRS still wait for the licence, its the main Government structure holding it up. But when DR went to Togo and met with the mines & ministry (or equiv) they were desperate for KRS to get the licence, and were a bit concerned with KRS driving forward with gold operations in Australia as they thought KRS were going to pull out of Nayega. DR also related back to shareholders the enormous amount of work Togo had undertaken to upgrade infrastructure (roads, ports etc) which will help KRS no end once Nayega gets up and running. So although from a KRS standpoint still no mining licence, it would seem that Togo have cracked on and improved the infrastructure which will make it easier for KRS to transport manganese and no doubt would reduce either the cost of producing in Togo due to improved transport links making transport easier and quicker. So in short, once the mining licence drops, Nayega could well move quickly. As DR has said though, right now its all about gold and profits. Once KRS are sat on that cash pile it all of a sudden opens up lots of doors to them.

[the count of monte_cristo] 08/5/2016 18:56

Laptop....me thinks a sharp rise.

The share price never breached 2p in April, reckon 2p is the short term target.

More news on gold deliveries will help.

So to summarise what is the situation with Nayega?

[laptop15] 07/5/2016 23:28

Next week could see the share price rising as most of the sellers would be out now after the placement.

[novicetrade68] 06/5/2016 18:36

AUD must have crashed I guess, gold in $$ hasn't reached new highs for now.

[tom111] 06/5/2016 17:49

Now 1758 AUD

[edgein] 06/5/2016 09:57

Nice to see we're charging at AU$1736 per Oz.

Regards,
Ed.

[lamanai] 05/5/2016 12:30

No problem NoviceT. Just for clarification it is the PoW AISC that is AUD900 including royalty. That is why DR wants to get cracking on the higher grades there. I have had no indication that the AISC on the open pit projects has decreased to significantly less than the AUD1200 including royalty that was previously stated.

[novicetrade68] 05/5/2016 10:40

Thanks for getting that clarified with DR lamanai - very pleased to hear the royalty is already included in the AISC - it all counts ;-)

[edgein] 05/5/2016 08:54

Lamanai,

Yeah its currently getting fab margins at the moment because the current production is at surface and lower cost to PoW. Then we should get Lindsay's on soon. Before they raised the cash they were targeting Q3 for Lindsay start up, as we know they showed pictures of the optical sorting trial at Lindsay. Its a cash cow already with Ozzie gold trading at $1705/oz but we'll likely double production with the start up of Lindsay (10-20000oz pa, that's about 10 years of production). PoW as you say will be another significant producer to the company and produce significant additional free cash flow from early next year. I don't mind the healthy profits to wait until they acquire several other assets, make use of their large free cash flow. Make hay while the sun shines and its certainly shining on KRS with huge margins on ozzie gold.

Regards,
Ed.

[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.