KAU - Kaiser Reef

[Als2own]

Slowly climbing up from the sell off in January . Appears to be a large holder still exiting. Any rise is being reloaded on the sell side. Looking forward to hear how progress is going next month

 

[Als2own]

Quarterly was as expected. Not great financially but some positives if you’re looking. January was a write off but we knew about that in February. They have cut a deeper decline to reach the mining zones they’re chasing so grades should increase moving forward and drilling continues

 

[Als2own]

Nice jump in price today up7%+ I assume on gold price jump overnight and continuing today. Need to see an improvement in gold output to be justified. Surely after 23m+ spent on upgrades there’s every chance this will happen. When is the question

 

[Als2own]

Change is a foot since their “strategic raise”. Volume has started to increase. CEO has finally begun telling the story to the masses as they embark on the push down to the Dukes reef. He has been quiet for a couple of years so it’s good to see him selling the story. Be nice to start seeing an increase production at higher gpt at the A1 mine. Looking forward to the next 6-8 months with drilling on going at Maldon also. Should see some great news flow.

 

[divs4ever]

Binding Terms Sheet for Divestment of NSW Exploration Assets

ASX RELEASE I 25 JUNE 2024

ASX: KAU ASX:KAU I Kaiser Reef LtdABN 38 635 910 271Level 2, 36 Rowland St,Subiaco WA 6008South Australia 5061kaiserreef.com.auT: 08 9481 0389E: admin@kaiserreef.com.au


Kaiser Reef Limited (ASX: KAU) (“Kaiser” or the “Company”) is pleased to advise that it has entered into an agreement to divest its NSW exploration assets for total consideration of up to $3.625 million.

The assets the Company is divesting are the Stuart Town group of tenements (Figure 1)and the Macquarie North tenements (Figure 2), collectively the Projects. The acquirer is HearMeOut Limited (HMO), an unlisted public company which is proposed to be renamed Resolve Exploration Ltd.

HMO intends to lodge a prospectus in the 3rd quarter of 2024 to re-list on the ASX.

Although Kaiser considers these tenements are highly prospective for gold mineralisation, the Company has made the decision to focus on near-term gold mining growth opportunities in its wholly owned Victorian production and exploration assets.

Kaiser will retain exposure to the Projects with a 20% free carried interest until a Decision to Mine is made.

Subject to satisfaction, including due diligence, ASX Approvals, HMO completing a capital raising and various regulatory approvals, the following Consideration will be payable to Kaiser:

• $25,000 Exclusivity Fee;
• $1,100,000 in Scrip in HMO;
• $500,000 reimbursement for past exploration; and
• Up to $2,000,000 in performance rights in HMO based upon success hurdles that include resource definition and decisions to mine.

Potential advantages of the proposed transaction include:
• Facilitation of greater focus on the development of the A1 Gold Mine;
• Receipt of the Consideration Securities being Securities in a company seeking tolist on the ASX;
• Facilitation of growth and development of the Projects in a stand-alone dedicated minerals exploration entity;
• Elimination of the costs that would otherwise be incurred by the Company to maintain the Projects in good standing; and
• Entry into a relatively simple and cost-effective transaction to realise the value in the Projects.

i do not hold this share

 

[Als2own]

Those leases were the reason I first bought into this stock. Will be following the story closely. At least they retained some ownership

 

[Als2own]

Have been reviewing the announcement from the 26th. Seems my time line needs to be adjusted. They have already made contact with the duke’s reef 3 months before my interpretation. Should see an increase in tonnage and gpt in the next quarter. Don’t think the last quarter will be fantastic so could be a buying opportunity on the results. Looking forward to end of year

 

[Peterjackson]

KAU just had the most volume in almost a year,was just wondering if anyone here bought in?

 

[Sean K]

KAU just had the most volume in almost a year,was just wondering if anyone here bought in?

Nope. I actually spent an hour or so researching this today and it looks like a hobby project.

Their cornerstone asset is a mine that's been operating since 1860 and produced just 500K oz - albeit at 25g/t. It's artisanal.

It's got a very low MC so there might be some upside. Or, it's got a low MC for a very good reason.

I really only look at things that might potentially produce over 100K oz pa, so unless they find a Swan Zone below Nova this is way off the radar for me.

 

[Garpal Gumnut]

KAU just had the most volume in almost a year,was just wondering if anyone here bought in?

Nope. I actually spent an hour or so researching this today and it looks like a hobby project.

Their cornerstone asset is a mine that's been operating since 1860 and produced just 500K oz - albeit at 25g/t. It's artisanal.

It's got a very low MC so there might be some upside. Or, it's got a low MC for a very good reason.

I really only look at things that might potentially produce over 100K oz pa, so unless they find a Swan Zone below Nova this is way off the radar for me.

Thanks Peter, for bringing this to my attention.

It wasn’t I. I did have a look as I’m after a miner like this. The quality of management and board seems good. The incentive via options for the new guy Formica seems not indecent. I didn’t have time to look him up but he has experience on other similar boards as do they all. The chart is good with recovery well on the way, higher highs and higher lows, RSI ok. So, I’ll keep it in mind.

All the best with it.

@Sean K Thanks for the info. I didn’t go in to see it that deeply. Good to know.

gg

 

[Peterjackson]

Here's a short interview with the mine manager for some more info.

 

[Als2own]

Nothing to report here. Gold production has decreased quarter by quarter. I suppose it is expected as they cut a new decline. They did mention that production had risen to 9gpt in the last quarterly but without monthly updates it’s difficult to know how many tonnes are being pushed through the mill. For me the countdown has begun. It’s got 12 months to show something positive or I’m out

 

[Als2own]

Waiting waiting waiting for some monthly updates. Unfortunately no news means there won’t be any surprises in the next quarterly I presume. Can only hope they have started to mine some of the new reef that they have made contact with. Hope never a great feeling when invested

 

[Als2own]

Finally an update on the progress being made at the A1 mine and I don’t mind saying that things are getting brighter down a very deep hole. All the boxes being ticked for me although they have left the run late to have a big impact on my competition performance which has been miserable to date. Anyway I’m expecting a great run next year

 

[finicky]

KAU up 20% in early trading.
'Next Investors' released a free newsletter giant ramp on it this morning.

Not Held

 

[Als2own]

AGM was on today and I for one was very disappointed that no presentation or update was provided. There was also no way of attending the meeting unless in person. Not always possible. Surly in this day and age, with the tech readily available, virtual access could have been achieved. It would have allowed for some questions that all holders would have appreciated I’m sure. Oh well. May the gold gods shine upon us and they are mining some of the accessible fresh material we’ve been told about and shown.

 

[Als2own]

2025 comp pick same as last year. Must be a sucker picking this again but they seem so close to mining the fresh levels and the historical record shows ounce’s per vertical metre are exceptional. Directors have tied their remuneration towards those higher grades. Will run hard if they achieve those this year

 

[finicky]

Started diamond drilling for virgin ore below limits of historical mining at A1 mine as announced 12/12/24. Could be news flow from that to interest the market. They're expecting to find ore that will mine at 800ozs per vertical metre. That's pretty good although 1,000 oz/vm is the standard for a top mine.

They have their own small processing plant with capacity of 250,000 tpa which is a great asset for a minnow, considering cost of building one and getting it funded these days. Currently operating at only 20% of capacity although they have recently made a deal to process a third party's ore and are looking for other 3rd party suppliers.

They've been making some money mining but not profits to speak of from remnant ore at levels already mined historically. Having now breached the '23' level limit of historic mining they are looking for heightened production from untouched lode and using modern methods and equipment. It still appears they'll use less economic airleg mining and that strikes me as a drawback - could be wrong though, maybe they'll adopt a modern approach with fresh ore faces - probably will come to think of it.

From past bitter experience I have my doubts whether it'll be all that rewarding for any welded on investors who'll always be the last in line.

Chart shows the big weekly spike in volume upon mid October announcement of having advanced the decline to the extremity of historical mining with the prospect of fresh ore ahead. This was concomitant though with an announced placement @ 0.15/share.

Not Held

WEEKLY

 

[Als2own]

Started diamond drilling for virgin ore below limits of historical mining at A1 mine as announced 12/12/24. Could be news flow from that to interest the market. They're expecting to find ore that will mine at 800ozs per vertical metre. That's pretty good although 1,000 oz/vm is the standard for a top mine.

They have their own small processing plant with capacity of 250,000 tpa which is a great asset for a minnow, considering cost of building one and getting it funded these days. Currently operating at only 20% of capacity although they have recently made a deal to process a third party's ore and are looking for other 3rd party suppliers.

They've been making some money mining but not profits to speak of from remnant ore at levels already mined historically. Having now breached the '23' level limit of historic mining they are looking for heightened production from untouched lode and using modern methods and equipment. It still appears they'll use less economic airleg mining and that strikes me as a drawback - could be wrong though, maybe they'll adopt a modern approach with fresh ore faces - probably will come to think of it.

From past bitter experience I have my doubts whether it'll be all that rewarding for any welded on investors who'll always be the last in line.

Chart shows the big weekly spike in volume upon mid October announcement of having advanced the decline to the extremity of historical mining with the prospect of fresh ore ahead. This was concomitant though with an announced placement @ 0.15/share.

Not Held

WEEKLY
View attachment 191044

View attachment 191045

Very detailed explanation of the state of play at the A1 mine. Let’s not forget Maldon. They have tied their performance rights to starting mining there within 2 years. Should hear some news on that front this year. They have a JORC of 180k+ozs already with an inferred of 340k+ ozs. Probably not going to get up this year but the expectation may cause some market movements

 

[finicky]

Let’s not forget Maldon

That possibly improves the picture. Not too keen on single mine businesses - to put it mildly. Will check out Maldon.