# G6M - Group 6 Metals



## Donga (30 July 2009)

As KIS isn't being discussed and as a long suffering holder, thought this would suit as my intro new thread:  





The company has secured development approvals, signed up with a large Chinese partner and is currently preparing for production once again. The SP declined with the small cap miners and seems to have been overlooked in the recent recovery. With the Chinese economy on the front foot again, apparent decreased reserves of tungsten globally, sound financials with their JV partner/customer in place, KIS may be worth a look.  Does anyone have any thoughts? I'm holding at average 31.5c after buying them on the way down. The following from their website: 

Its redevelopment of the original King Island Scheelite Mine is being carried out through the Dolphin Joint Venture (DJV) with joint venture partner Hunan Nonferrous Metals Corporation Limited (HNC). 

This resource comprises 8,576,000mtu (contained WO3) and its proposed redevelopment involves substantially extending the original pit to create a mine with a seven year mining life and mill facility with an eleven year processing life and annual production of approximately 3,000 t of W03 in concentrate 

With the necessary approvals granted and funding arrangements in place through the joint venture and loan agreements with HNC, the project team is  focussed on finalising the design aspects of the mine and mill using the best sustainable practices available.


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## lazyfish (12 October 2009)

Donga said:


> As KIS isn't being discussed and as a long suffering holder, thought this would suit as my intro new thread:
> 
> View attachment 32021
> 
> ...




Personally I think KIS looks pretty good, esp the grade and long mine life. Funding in place through JV partner is another big plus. But lots of infrastructure needed (mill, power plant, accomodation, port, airstrip?, sea wall etc), and their target production seems small (600,000tpa throughput, 50% ownership). I would consider entering at current price if the price stays but there seems to be no sellers. I currently do not hold. Are you still holding? Would be intereted to hear your thoughts on management.


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## Donga (12 October 2009)

lazyfish said:


> Personally I think KIS looks pretty good, esp the grade and long mine life. Funding in place through JV partner is another big plus. But lots of infrastructure needed (mill, power plant, accomodation, port, airstrip?, sea wall etc), and their target production seems small (600,000tpa throughput, 50% ownership). I would consider entering at current price if the price stays but there seems to be no sellers. I currently do not hold. Are you still holding? Would be intereted to hear your thoughts on management.




Hi Lazyfish - I ran out of patience! Started looking at a lot of other miners, many from this site, especially those about to drill or ink an agreement. Been kicking lots of goals with the likes of PRU, FMS, KGL, EKM, RAU and TAM. Didn't do so well with PRW but it was an early one and lessons learned. 

Still holding my performers and have recently added IMA, NWE, PEN, ORD, RNG, ROG, CTP amongst others. Having a ball and hopeful that my biggest plays of MMR and BLY still have a lot of backend potential. 

I know one of the directors of KIS and have refrained from bugging him. You nailed it with the work they have to do, and the price of tungsten will be higher as the western economies recover, especially US. So I've decided to keep KIS on the watchlist and get back into it, probably sometime next year. 

Hope you're winning and that we finish 2009 higher than we are now, doesn't have to be too much as don't wanna be greedy


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## Donga (24 October 2009)

I'm back into KIS. Some keen interest with ttungsten players recently, especially VMS and saw that sellers in KIS were quickly evaporating. Suspect some folk are looking ahead and deciding to buy now pending further recovery.


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## 6figures (7 March 2011)

What are people thinking about KIS? I've been hearing it could be hte next LYC.. but far from it at this stage... nayone think otherwise?


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## springhill (5 July 2012)

A quick oversight and review of KIS operations as there has been no update for over a year.

*Dolphin Project*
The Definitive Feasibility Study to redevelop the tungsten mine on King Island was finalised during the March quarter based on producing an industry-standard 65% tungsten concentrate.
This study confirms the world class, high-grade, tungsten deposit on King Island is set for redevelopment, with a robust development plan supported by strong market fundamentals that will generate acceptable economic returns.
The development plan is based on reopening the former Dolphin underground mine to produce up to 350,000 tonnes of ore per annum, at an average grade of 1.04% WO3 over a 10 year mine life. Recoveries of 91% using well understood flotation techniques will see this mine supply a significant portion of the world’s tungsten outside China.
Key Outcomes of the Definitive Feasibility Study (DFS) include:
● A 10 year mine life from underground mining and retreated tailings.
● Potential for additional high-grade ore immediately down-plunge from the current ore blocks.
● Average production of 3,500 tonnes per annum of contained tungsten trioxide (WO3) in a 65% concentrate.
● Project NPV range of A$69 million to A$116 million (un-geared, post-tax).
● Project IRR range of 21% to 29% (un-geared, post-tax).
● Cash cost in the first four years of A$169 / metric tonne unit (mtu = 10 kg WO3).
● An initial capital expenditure requirement of A$133 million.

KIS, the 100% owner of the project, has completed the outright freehold purchase of key mine-related land (240.9ha) from the King Island Council, as announced on 13th February 2012.
KIS has also reached agreement for all project permits and approvals with the Tasmanian Environment Protection Authority, Minerals Resources Tasmania and King Island Council.
The Dolphin Project is within a retention licence that has adjacent exploration licences. A mining licence would be activated upon payment of the agreed environmental bond.
The Company has advanced discussions with key tungsten consumers, financiers and potential equity partners and investors to establish the optimal funding structure for this project. Discussions with consumers indicate a strong interest for life of mine production.
Once the necessary funding is secured, with all other components already in place, the Dolphin Project is development ready.

From todays announcement
http://www.asx.com.au/asxpdf/20120705/pdf/4277v7hy5lshgf.pdf
King Island Scheelite Limited (ASX: KIS) is conducting a review of its business with a view to implementing a range of significant cost-cutting measures in the near term. This review is being undertaken as a result of a decline in financial market conditions and delays in funding its Dolphin Project.
The Company remains confident it can secure the funding required to progress the Dolphin Project and continues to actively source project funding through ongoing discussions with off-takers, bankers and potential equity partners. However, given current market conditions, this is likely to take time. In the interim it is prudent to look at reducing costs on a range of fronts.
Once development funding is secured the Dolphin Project can be brought into production within two years, with the potential to supply up to 25% of non-Chinese global tungsten production.
*
Balfour Joint Venture (BJV)*
KIS has a 70% interest in the BJV with Pleiades Resources Pty Ltd (30%) to explore tin tungsten and copper-gold targets within BJV tenements in North West Tasmania.
A future exploration programme has been developed for both tenements held by the joint venture and expressions of interest are being sought to farm-into this project.

Would it be safe to say the Dolphin Project is starting to look a little shaky?

2 of the directors were involved with Excel Coal at the time it was taken over by Peabody (in 2006) for $9.50 per share.


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## springhill (28 July 2012)

This from KIS latest quarterly.

*Financial*
As at 30th June 2012 the cash balance was $1.02 million (March 2012 $1.61 million). Until market conditions improve, initiatives to reduce corporate and other costs to less than $1 million per annum are being implemented.

*Outlook*
The company is well placed to finalise Dolphin Project funding arrangements and to commence development.


KIS currently have $1.02m to their name. Until any kind of funding is secure this is in a holding (even a declining) pattern. Cash preservation usually doesn't lend itself to SP increases.


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## greggles (3 September 2018)

While KIS has been moving north for the last week and a half, quietly making higher highs and higher lows, the last couple of trading sessions have seen much more significant share price gains and it is currently trading at 11.5c, up 27.78% on Friday's close.

There is no news or other obvious catalyst for the recent share price gains, so I assume that someone is getting set in anticipation of some upcoming news?

Time will tell.


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## Dona Ferentes (4 February 2021)

King Island mine has been closed for 30 years. Now Tungsten prices are rebounding, and Chinese hold 83% of the production, there is talk the mine may reopen. Tas Govt to kick in some $$s?


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## crypto (4 February 2021)

Australia funds tungsten mine to break China’s grip
					

Tasmania has provided $10 million to reopen a tungsten mine, with talks under way to secure federal funding in another step to break China’s near monopoly on critical defence-related materials.




					www.afr.com
				



Good day for KIS today


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## Dona Ferentes (17 March 2021)

and another good day  (20% up on no news today, but yesterday trading resumed).

_A placement of 28 million shares at $0.20 per share, raising $5.6 million. The shares have been issued pursuant to Section 708A of the Corporations Act and ASX Listing Rule 7.1. The Lead Manager was MAC Equity Partners. _


> _The placement was corner stoned by Swiss investment company D.A.CH.S. Capital AG, which subscribed for 20 million shares. The balance of the shares, which was oversubscribed have been allocated to Australian professional investors introduced by MAC Equity Partners.
> The Company will apply funds raised to paying off term debt of $4.7 million, plus accrued interest, which the Company had previously incurred in acquiring fixed property adjacent to the Dolphin mine site and working capital to advance the Dolphin Project. The remaining $0.5 million debt will be converted to equity following FIRB approval. _



_With a significantly strengthened balance sheet post-placement, the Company looks forward to negotiating from a much better position the debt component required to fund the recommencement of operations at the Dolphin tungsten mine_.

I wish I could be corner stoned


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## Dona Ferentes (18 July 2021)

and that was about as good as it got, back in mid March  .... KIS now 23c a share

Interest piqued by the imminent listing of a Canadian Tungsten player Almonty on the ASX (Code : AII). Almonty specialises in acquiring distressed and  underperforming operations and assets in tungsten markets. 

Recent announcement shows things are progressing. 
*Highlights*: 

Tasmanian Environmental Protection Authority approves further Management Plan for Dolphin  
Gekko Systems has been selected as the preferred engineering company to design and build the Dolphin Processing Plant
Detailed design and contract documentation advancing  
Appointment of additional key managerial staff  
*Development Plan*

A detailed mine plan and schedule ... details an 8 year open cut mine, with average annual production of 400,000 tonnes of ore per annum, yielding 200,000 mtu of WO3 (1mtu = 10kg)
Ore to be crushed and processed, primarily through a gravity circuit, with dressing of the gravity concentrates using flotation and magnetic separation.
Plan to increase mine life on completion of the open pit by continued mining of the remaining resource external to the 8 year open pit
Grade and Tonnage of Comparable Tungsten Deposits​KIS reserves and resource sits at the highest grade, and contained Tonnage of WO3, compared to other projects








						Dolphin Project - Group 6 Metals
					






					www.kingislandscheelite.com.au
				




_So, what are the challenges? A quick look around_

Tungsten is largely not smelted to form metal due to its high melting point and is instead extracted from crushed ore using a series of chemical reactions.
Due to the high-capital cost associated with the construction of a chemical processing plant to produce APT, the most commonly traded form of tungsten, most junior miners produce a tungsten concentrate. Price received is dependent on grade.
As a result of high Chinese influence, tungsten prices have experienced considerable turbulence over the last several years (Roskill)
There is stock overhang from mothballed mines and also a failed Chinese metal exchange releasing metal to market
With a greater uptake of electric vehicles over internal combustion engines, tungsten consumption in the automotive sector may never recover to 2017 levels.
Strong growth in superalloys and other alloys is set to drive steel and alloys demand, whilst in the chemicals sector, the use of semiconductors and demand for consumer electronics is expected to lift.
_All in all, is KIS a good proposition?  Possibly, but earnings seem very dependent on China's effect/ control on the market. There are opportunities further up the supply chain for new mine projects to come online. Several large mines in China and Russia are reaching their end of life and will need to be replaced for the market to remain adequately supplied (Roskill). Interesting that Almonty (AII) is looking to list on ASX? (Is that good or bad, or the basis of future corporate actions?)




_


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## Dona Ferentes (1 October 2021)

Tungsten explorer King Island Scheelite is raising $31 million to fund the redevelopment of its Dolphin Tungsten Project.

The company is looking to restart the project, which historically operated between 1917 and 1990, but closed due to depressed prices.

The company has appointed PAC Partners and Canaccord Genuity to manage the capital raising.

The offer is priced at 14¢ per share; KIS last traded at 17c


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## Dona Ferentes (10 November 2021)

King Island Scheelite still bouncing along the bottom.  ..... trading around 14c

There was a bit of publicity in the media recently, as plans progress to reopen.

_King Island Scheelite project off Tasmania cleared a key development hurdle this week. A group of shareholders put in $10.2 million to enable the mine to begin acquiring heavy machinery that it will use to resume operations once a $45 million processing plant is finished in early 2023.

Mining is set to begin in about six months, CEO Johann Jacobs said in an interview, so the plant will be ready to process ore the moment the plant is ready.

The backers say it is now up to the Australian government to help accelerate the development of a King Island port and renewable energy industry on the island to produce what would be the world’s first green tungsten . 

The project is drawing attention, not only on King Island, where it will become a major driver of economic development, but also by the federal government and allies like the US, which are concerned that_* China currently dominates the market.*

_Mr Jacobs admitted that the *company had difficulty obtaining funds from conventional lenders *because of the nature of the tungsten market._



> "_You can not sell tungsten forward on metals exchanges, everything is priced at spot and the biggest issue is that China controls 82 per cent of the market",_ Mr Jacobs said.




_But the advantage King Island tungsten has, according to Mr Jacobs, is that the project should be able to produce the material at about $US100 ($135) per metric tonne, versus China’s $US220 production cost._



> "_They can obviously undercut us, but they will be losing money and any sensible person would only bleed to an extent they can weather it and of course they get government subsidies._





> "_Those two issues really played against us getting conventional debt. [But] the shareholders came to the party with very commercial terms._"




.......... sounds messy.


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## System (15 November 2021)

On November 15th, 2021, King Island Scheelite Limited (KIS) changed its name and ASX code to Group 6 Metals Limited (G6M).


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## frugal.rock (8 January 2023)

Current geopolitical status might bring some interest to this after reading between some lines. US government interested in securing ally based supply lines, but probably haven't put their money into it though, but have visited the King Island project 3 times according to this interesting 4 corners episode.
(Mentions many other companies also)


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