Keras Resources Share Discussion Threads

[andylee3] 21/10/2018 08:15

Alkane announcement regarding Calidus investment.....

[zhockey] 18/10/2018 22:38

RS,

I expect they see Pacton as a longer term bet to fund the the DFS. Pacton stake could be worth a$10M by end of next year.

Yes the timing is odd but Calidus have had a very disappointing year thus far and I guess a CR at 2.9 is better than sub 2c.

[rec0very stock] 17/10/2018 17:45

4STA,

There is absolutely no reason why CAI cannot be in an ISA. Ask Halifax why not. Can they trade ASX outside the ISA? If so why not inside. If they do not trade ASX then move all your KRS elsewhere and while you are at it you might as well move everything else to a decent provider that can trade the main international markets.

Today's news is good, but I question the timing and price. CAI did not need the money now, and has TSX shares it can sell in the new year to raise cash for PFS. I would have thought once the resource update is out, CAI could have done this at a better price. Strategic partnerships are handy going forwards, but you should not have to give your shares away to get them.

[edgein] 17/10/2018 13:55

STA,

Perhaps you should change ISA provider, I can too hold asx companies in my isa. Currently all my KRS are in my ISA too as no tax on the eventual profit there. But I do intend to hold CAI well beyond A$0.03.

Regards,
Ed.

[4sta] 17/10/2018 13:44

Think it depends who you have your ISA with. I'm with Halifax.

[zhockey] 17/10/2018 13:12

I thought the distribution of CAI shares were ISA compatible???

In fact, I already have some CAI stock in my ISA.

[4sta] 17/10/2018 13:06

Edgein,
Were it not for the fact that I hold all my Keras within an ISA and cannot buy / hold ASX shares there, I too would like to hold onto them. I do think that they will become profitable gold miners. They're not hanging about either, real fast, solid progress.

[edgein] 17/10/2018 13:00

STA,

Personally I'd like the shares in CAI unless they were willing to pay a premium on the market value. Which I would then probably use the cash to buy the shares in CAI anyway. :)

Regards,
Ed.

[cpap man] 17/10/2018 10:50

Keras Resources (KRS LN) 0.4p, Mkt Cap £8.6m - Calidus Resources raises A$3.7m from strategic gold miner.

Target 1.04p

CLICK FOR FULL NOTE PDF

Keras Resources reports the placement of 125m shares to Alkane Resources, an Australian gold miner.

Alkane runs the Tomingley Gold Mine in New South Wales producing 78,533oz of gold last year. Tomingley will develop a new underground mine next year as part of a major expansion program.

Alkane is putting A$3.7m into Calidus at a decent 13.5% premium to Calidus’ 5-day VWAP share price.

The funding will enable Calidus to complete its resource update and Pre-Feasibility Study at its Warrawoona Gold Project in the Pilbara of Western Australia.

The good news for Keras is that Calidus is now fully funded through the PFS and this should trigger the issue of a further 265m Calidus shares to Keras We had significantly discounted the value of these shares in our Keras valuation but the funding of the PFS indicates Keras should receive these performance shares without there being further need for dilution in Calidus.

The A$0.0295/s price paid by Alkane is a positive indication and should also lift the Keras valuation.

Keras is working on the mining and simple processing of a 10,000 manganese bulk sample paid for by a manganese alloy processor. We await further news on progress with this.

[4sta] 17/10/2018 09:46

Seems that Alkane have a lot going on at the moment so it's encouraging that they took the time and trouble to invest in us. Must have liked what they saw. I too wonder if they might in the future want to jv with Calidus. Maybe buy outright the shares that Keras hold on completion of the PFS? Wouldn't that be nice - some money in the coffers for Keras to get Togo up and running and a special dividend to shareholders maybe?

[snotham] 17/10/2018 08:07

Keras Resources PLC - Calidus Resources Secures Strategic Placement https://www.voxmarkets.co.uk/rns/announcement/65b8eb45-76e4-44ec-b24b-5c6ba6f7bb46

[edgein] 17/10/2018 07:59

Interesting raise, not only does it fund for the rest of the pre-feas work but its an interesting investor to have. I wonder do they want a JV as well as becoming a significant shareholder? I guess we'll see over time.

Regards,
Ed.

[cpap man] 17/10/2018 07:20

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

17 October 2018

Keras Resources plc ('Keras' or the 'Company')

Calidus Resources Secures Strategic A$3.7 million Placement with Gold Producer Alkane Resources



Keras Resources plc, the AIM listed mineral resource company, is pleased to provide an update released by Calidus Resources Limited (ASX:CAI) ('Calidus') regarding the strategic placement of 125m Calidus shares at an issue price of A$0.0295 per share ( 'Placing Shares') to Alkane Resources Ltd ('Alkane') (ASX:ALK) to raise proceeds of approximately A$3.7m.



Calidus reports that the proceeds of this capital raising, together with Calidus' existing cash position, will provide sufficient funding for it to complete the upcoming resource update and pre-feasibility study ('PFS') at its Warrawoona Gold Project in the Pilbara of Western Australia.



Keras currently has 458m shares in Calidus, representing approximately 35% of the current issued share capital of Calidus. Following the admission of the Placing Shares to trading, Keras will have a shareholding of approximately 32.3% of the enlarged issued share capital of Calidus. On successful completion of the aforementioned PFS, an additional 265m performance shares of Calidus ('Performance Shares') owned by Keras will be converted into ordinary shares of Calidus.



HIGHLIGHTS



· Calidus to raise an initial A$3.7m via the placement of 125m shares to Alkane at A$0.0295 per share representing a premium of 13.5% over the last Calidus closing price and in line with the 5-day VWAP.

· Calidus to issue Alkane 70m free-attaching unquoted options, exercisable at A$0.035 each on or before 01 November 2019 - this has the potential to deliver another A$2.45m of funds to Calidus (if exercised)

· Strategic technical alliance as part of funding allows Calidus to leverage Alkane's operational experience and cost base to assist in its upcoming studies

· Alkane operates the Tomingley Gold Mine in New South Wales that last year produced 78,533oz Au

· Alkane has just approved the development of an underground mine at Tomingley and has embarked on an aggressive exploration programme to expand resources in the region



Russell Lamming, Chief Executive Officer of Keras, commented, "Calidus has successfully secured the requisite financing to progress Warrawoona up through the development curve to the completion of its pre-feasibility study. For Keras, this will not only provide a more tangible sense of the value and optimum path towards production, but it will also trigger the issue of our additional 265m performance shares.



"Alkane also brings to the table considerable expertise in the Australia gold development and production industry, and I am sure the Calidus board will find their support invaluable as the Calidus team look to issue the updated resource estimate, publish the PFS and advance Warrawoona towards first gold production."

[cpap man] 15/10/2018 17:30

At the close of play your KRS trade looks well timed!

[rougepierre] 15/10/2018 14:05

Bought another 1 million...a steal at 0.358...

GLA and AIMHO as usual....

[andylee3] 15/10/2018 08:27

Bulls N Bears article...

www.businessnews.com.au/article/Shallow-gold-hits-for-Calidus-in-Pilbara

[andylee3] 15/10/2018 08:06

Calidus trading halt due to proposed capital raise....

www.investi.com.au/api/announcements/cai/24e5eeba-db5.pdf

[rec0very stock] 14/10/2018 16:33

Zhockey,

The figures are based on the basic assumptions given. £2m could come from a more conservative price estimate over the period - I just used current. I took Opex from the share price Angel note which gives Opex for the bulk sample of $3.3 per DMTU. There may be more to come out when the small scale mining is considered eg there is nothing in the bulk sample OPEX for royalties and tax. Plus I suspect Russell wants to under promise and over deliver.

The point Russell makes is valid whether it is £2m or £5m - it opens up the potential to pursue other projects and grow the business. With positive cashflow equity can be raised at a decent price and debt can be taken out at sensible rates, provided the opportunities are there that need capital injection.

My feeling is the market will continue to ignore KRS despite all this until the cash really is flowing. This will enable steady stake building over the next few months for those who want to.

[cpap man] 13/10/2018 15:15

Keras Resources* (KRS LN) . Manganese production in Togo



Keras Resources* (KRS LN) 0.325p, mkt cap £7.6m - Manganese production in Togo

BUY, Target price 1.04p

CLICK FOR FULL NOTE PDF

Introduction

Keras is an exploration and development company with assets in Togo and W. Australia

In Togo; Keras plans to produce a particularly clean manganese ore with a fully funded, 10,000t bulk sample due to start soon. Much of the equipment is already in place ready for mining with trucks due to take material from Nayega to a deep-water port to the south. Keras is targeting manganese production of 250,000tpa of 38% lump and fines.

Keras also holds 100% of the Kamina Cobalt & Nickel project in Togo.

In Australia; Keras holds 35% of Calidus, a gold exploration company with a JORC resource at Warrawoona of 712,000oz JORC gold grading 2.11 g/t. Calidus’ market capitalisation is around A$38m valuing Keras’ stake at some A$13.3m (£9.4m) or substantially more in the case of a takeover or mine development event.

Keras are currently producing a 10,000t bulk sample of manganese ore starting with a small scale mining operation to de-risk before scaling up to a potential 250,000tpa.

Key points:

Keras has invested in plant and equipment that would enable them is to start mining 4mt of surface Detrital and Laterite Reserves on a small-scale basis separating manganese nodules and fragments to simply enable the processing of a cleaner Manganese oxide.

The acquired plant has the capacity to produce approximately 6,000tpm of 35% manganese ore to be fed by a small-scale contract mining operation. The $1.76m mining and instillation cost of plant and equipment is being paid for by a major producer of manganese-based alloys to assess the quality of ore for smelting.

Testwork indicates the ore is amenable to pre-concentration by simple screening and scrubbing. Mining and processing of the near surface ores should give sufficient material to de-risk the project and to enable the financing of a larger operation on receipt of full mining permits. DMS testwork indicates recoveries of >90% of the Mn from rejecting 50-60% of the mass feed. Appropriate Process Technologies (APT) based in Joburg will start commissioning of the 20t per hour scrubber plant at the beginning of November.

Togo-based, Carriere Mines Travaux Public (CMTP) are providing the mining & screening equipment for the bulk sampling operation and logistics between Nayega and Port Lomé.
Full scale mining should use the same infrastructure as the bulk sample process enabling a seamless transition into larger scale mining when permits are received.
New generation NMC batteries need sustained production of high-purity Mn sulphate sourced from high-grade Mn ore or Electrolytic Mn Metal. The push to secure battery material is impacting Mn chemical markets driving a rally in prices from the end of 2017.

The full-scale production target of 250,000tpa is based on metallurgical testwork and this will be tightened up during the bulk sample process and therefore is likely to change.

Valuation: we value the manganese business on its current small-scale mining plan at £11.7m or 0.52p/s. Keras’ stake in Calidus is worth A$16.5m or 0.52p/s. The two businesses together indicate a value of 1.04p/s not including any value for the Kamina cobalt and nickel in Togo.

*SP Angel act as Nomad and broker to Keras Resources

[zhockey] 13/10/2018 13:30

RS,

I had worked out similar figures a while back. However the chap that reported back from this week's presentation said that £2M profit was mentioned.

[rec0very stock] 13/10/2018 12:55

Small scale mining 6000TPM at 35% = 210,000 DMTU

Current price per DMTU FOB Port Elizabeth $6.22

OPEX per DMTU $3.3


= $630k net revenue. = $535500 to KRS = £410K per month = £5m per year less KRS PLC costs

[rec0very stock] 13/10/2018 11:48

There seemed to be a demand for a new thread. I don't believe in long headers that you need to scroll through or skip endlessly. I won't be offended if nobody decides to use it.

I think we are at a turning point for KRS. There is still a way to go with mining permits in Togo, but things look far more hopeful than at anytime in the past 5 years. If the follow on small scale mining happens then KRS becomes cash generative almost overnight.

My only hope is that the market does not cotton on to this until the new Tax Year so I can bed and ISA even more KRS shares.

Enjoy the discussions on whichever threads you use - it has always been well behaved so I see no need for any ground rules and hopefully we will all enjoy the rewards we have been patiently waiting for.

[rec0very stock] 13/10/2018 11:29

I have created a new thread.

[rec0very stock] 13/10/2018 11:27

A new thread for discussion of the dual value in KRS.

With Togo looking like it could finally move into some sort of production near term cash flow generation is a real possibility not a pipe dream anymore. And with that comes many new potential small scale projects which would make this part of KRS a worthwhile proposition on its own.

CAI has been demerged and those who were in at the time now have CAI shares worth on their own more than their whole KRS holding was at the time. There is another thread for CAI here:



Now we have a new in production asset in Utah USA producing high quality organic Phosphate.

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