Kropz Share Discussion Threads

[1madmarky] 23/11/2021 12:24

SA is a pretty good jurisdiction from talking to Leon of JLP. They are doing very well in SA.

[the count of monte_cristo] 23/11/2021 12:14

It's very difficult to buy in volume, when I did it in October I think my buys were pretty much the only ones on that day and the stock went up over 10%. So you could say a 20k investment moved the market cap 4m GBP on that day. This made me quite excited because I started to project forward in my thinking, months down the line, to when more investors start trying to buy in as the story unfolds and hopefully positively moves forward. They won't be able to buy in volume and the price will be squeezed upwards. It's shame we don't have anyone around from earlier in the year to ask about how easy it was to buy and sell when the share price went to 12p.

I am also thinking, should a speculative element start to look for phosphate stocks, for example if the phosphate price moves above 200 USD, then they have very few options on AIM. I'm trying to predict the future with some sort of success here, all the company need to do is deliver on the production and this will really start to move!

[keya5000] 23/11/2021 11:55

I started picking a few up a month back and have added yesterday and today. Will keep adding more. I reckon 95% of the free float is tied up here.

Could and should see 20p+ in q1

[the count of monte_cristo] 23/11/2021 11:44

Yes, me too. The market doesn't often miss things but I think this one has really been missed and if they hit those targets over the next 3 months of delivering first product to market and the Hinda FS into rising phosphate prices this has only one way to go. SA is one of those riskier countries, which is why this is at the current price and not in the teens or 20p range right now.

[1madmarky] 23/11/2021 11:30

Mad..... ? I'm becoming more convinced that krpz will be a significant contributor to my financial wealth. Thank you for taking the time finding and illuminating it.

[the count of monte_cristo] 23/11/2021 11:12

I would expect the share price to close at or above 6p today

[the count of monte_cristo] 23/11/2021 11:06

I have added some more, difficult to buy stock in any quantity.

MadMarky, we are the mad ones, me, you and Papillon! Maybe we will be joined by some other investors/speculators soon.

[1madmarky] 23/11/2021 11:04

A reassurance RNS. Just keep swimming, just keep swimming!

[the count of monte_cristo] 23/11/2021 10:24

Good news, KRPZ is looking very cheap at these prices now. A slight delay with the Hinda FS, but I'm happy to wait for a bit longer for better project metrics.

The stock was 12p in May this year, well since then the phosphate price has almost doubled and we are now much closer to first ore delivery than we were then!

[the count of monte_cristo] 23/11/2021 10:23

23 November 2021

Kropz Plc

("Kropz" or the "Company")

Update on Elandsfontein and Hinda projects

Kropz Plc (AIM: KRPZ), an emerging African phosphate developer, is providing updates for its Elandsfontein project ("Elandsfontein") located in the Republic of South Africa and its Hinda project ("Hinda"), located in the Republic of the Congo.

Elandsfontein

Significant progress continues to be made at Elandsfontein. The project schedule remains tight, however the project remains on track and within the original projected capital budget for commissioning in December 2021. These achievements have been realised against the backdrop of the COVID-19 pandemic.

Site activities are currently split between finalising the piping installation and the electrical, control and instrumentation installation and early commissioning activities.

Earthworks and civil construction are complete; the fabrication and erection of structural steel, platework and piping are complete and mechanical equipment is installed.

Pre-commissioning (C2) activities are advancing well. The C2 activities largely entail testing signals from field instrumentation to the SCADA operating system, testing input/output signals for instruments and direction testing of electrical drives.

C3 (or cold) commissioning has commenced in areas where installation is complete. Several tanks and thickeners have been filled with water to run through the leak detection process, before starting to pump water through the circuit.

The piping installation progress was hampered by a nationwide industrial action by the National Union of Metalworkers of South Africa ("NUMSA strike"). The NUMSA strike affected the off-site workshop related work on the rubber lined pipe closures, which in turn affected the site work. Mitigation plans were put in place, but employees were intimidated and the mitigation efforts had to be halted. The NUMSA strike commenced on 5 October 2021 and ended on 21 October 2021. No further impacts of the NUMSA strike on the project schedule are anticipated.

The delivery of the 'first fill' of imported reagents from the United States, is on track for mid-December 2021. While the delivery times for imported reagents remain under pressure due to global shipping challenges, recent feedback from shipping agents is that the freight demands are expected to ease after Chinese New Year. Additional orders have been placed to secure delivery for Q1 2022.

Transnet has provided the Company with a draft port access agreement to support the long-term export of Elandsfontein's phosphate rock through the port of Saldanha. The contract is now being finalised between the parties. Exports through Cape Town will only be required for a maximum of 30% of Elandsfontein's export production of approximately 1 million tons per annum, and only if capacity through Saldanha is unavailable for a period of time. First phosphate rock ore exports from Elandsfontein are expected in Q1 2022.

The current and further potential effects of COVID-19, and the possibility of a fourth wave of infections in South Africa remains a risk to the project schedule. The Company has mitigated this risk as far as reasonably practicable by compliance to the Kropz COVID-19 policies and procedures.

The Company will provide further updates on the Elandsfontein project and commissioning progress in due course.

Hinda

Hatch is currently in the process of finalising the updated feasibility study ("Updated FS") on Hinda. Hatch is currently engaged in a value engineering phase to optimise the project economics. The results of the Updated FS are expected to be released in January 2022.

[the count of monte_cristo] 22/11/2021 11:39

Yes and in a weak market it is bucking the trend and moving north. Positive.

[papillon] 22/11/2021 11:21

Well it's got some exposure today. KRPZ is currently showing as number 7 on advfn's list of the biggest 10 percentage risers today.
Had another tiny top up.

[the count of monte_cristo] 22/11/2021 11:12

Look at the Indians, they can't get enough of the phosphates, actually they are in trouble with the amount they have. If they can't properly feed there massive young population it's going to get bad there. Phosphates are so important for increasing agricultural yields.

Hinda is the worlds largest undeveloped project. Once the market gets hold of this story it could get very exciting here.

[the count of monte_cristo] 22/11/2021 10:38

If this company get it right and deliver we could get exceptional gains here.

[1madmarky] 22/11/2021 08:46

There is life wah ha ha ha!

[the count of monte_cristo] 22/11/2021 01:13

Phosphates
Many international phosphates markets saw moderate increases this week, as the Chinese export ban continues to tighten the market. The benchmarks that impact the South African price were flat.

The buying season for phosphates has now ended in Brazil and buying into the US has also slowed down as the river barge network has now closed for winter. Widespread buyer resistance to current prices is being reported from Europe and North America. But with availability of phosphates limited by the Chinese absence from the market, even with demand reducing (i.e. demand destruction), it is hard to see phosphate prices declining much. Any additional supply shocks, whether from export producers having production problems or governments applying restrictions on exports, will push phosphate prices up as the supply-demand balance remains finely poised.

Indian phosphates stocks are exceptionally low by historical standards and India therefore remains a very aggressive buyer of phosphates. Reports indicate that India intends to import close to 2 million tons of phosphates for Q4 this year, which equates to 7% of total annual trade in phosphates (or around 28% of global trade for Q4 in other words).

Sulphur, phosphate rock and ammonia, the key raw materials for ammonium phosphates, all showed large increases again this week. This pushes the cost base of MAP and DAP upwards and adds further support to higher prices.

[the count of monte_cristo] 16/11/2021 15:00

The update on Hinda is overdue, we should receive that any day now. Hinda is one of the worlds largest phosphate deposits, combined with Elandsfontein they could supply something like 4% of the worlds needs.

[the count of monte_cristo] 15/11/2021 12:32

Nice to see a bit of interest coming into the sp

[the count of monte_cristo] 12/11/2021 14:50

All the management need to do is get this into production and start selling the product and also excite the market on the Hinda project.

[the count of monte_cristo] 12/11/2021 14:01

Phosphates join Urea on the upwards rise, Potash pauses

Phosphates
Phosphate prices rose this week as the effect of the Chinese export ban begin to be felt. Brazilian buying pushed the MAP markets up, and phosphate supplies remain very tight.

Chinese domestic prices are reported to be around $350/t or 40% below international prices, so Chinese producers are starting to build inventories. This isn’t helping the international market where buyer interest in MAP and DAP remains very firm. The outlook for phosphate prices remains high as supply continues to lag demand.

Phos rock prices have begun to escalate as rock producers are able to justify higher prices on the back of MAP and DAP prices being so high. This is more bad news for non-integrated phosphate producers, who saw yet another jump in sulphur and ammonia prices this week too.

Fertilizer producers, particularly the low cost producers, are starting to report massive profits on the back of these highs prices. Phosagro, one of the Russian majors, reported profits for the first 9 months of 2021 of $1.23 billion (R18.8 billion), more than double for the same period in 2020. Phosagro actually made a loss in Q3 2020, whereas they have reported a net profit of $545 million (R8.3 billion) for Q3 2021. The major phosphates players, such as Phosagro, are the biggest beneficiaries thus far because phosphate prices have been elevated for the longest of all the nutrients.

Locally, there was an announcement of Foskor exporting phos acid to Bangladesh, which strikes us as bizarre given that Foskor’s production has been very poor this year and the local market for phos acid is crying out for the product. The timing of the export has not been specified but it is reasonable to assume that it would need to take place in the next 2-3 months at the latest. Foskor will need to build inventory for this shipment, which means cutting back on MAP production and/or cutting local sales of phos acid. Local sales are usually more profitable than exports for Foskor, so not only is the local market getting a slap in the face but the nation of South Africa, who own the major share in Foskor via the IDC, are left with poorer returns than could otherwise be realized.

[the count of monte_cristo] 04/11/2021 13:49

Yes, could be a perfect storm, then speculators start coming in and looking at Hinda and speculating about it and JV's with majors and that kind of thing and this speculation could seriously move the share price

[1madmarky] 04/11/2021 10:25

Agreed. The price is also said to not be volatile. So the current steady climb should result in an elevated price being present when we are actually a producer.

[the count of monte_cristo] 04/11/2021 09:01

The above is very positive about the phosphate prices, personally I think we will see all time highs in not to distant future. I also think that China will not open up as quickly as people expect.