CAZ - Cazaly Resources

[barney]

Positive price action today on CAZ. Be interesting if there is some follow through this week

 

[greggles]

Positive price action today on CAZ. Be interesting if there is some follow through this week

View attachment 157828

I thought you might have bailed out of CAZ after Vanrock tuned into a duster last year.

The The Sundown Lithium Project in Canada looks promising and has certainly injected some life back into the CAZ share price, which has held up well since the acquisition announcement last week. The two year downtrend has now been broken and this could be a turning point for CAZ if management follow through now that the market finally seems to be paying attention.

 

[barney]

I thought you might have bailed out of CAZ after Vanrock tuned into a duster last year.

Yeah I have considered letting it go a few times to be honest but I thought they had enough irons in the fire for something to work eventually. Not a huge hold so I thought I'd give it wide wiggle room. One of the things I like about low priced Specs is you can almost treat a total bust (SP= zero) as your stop loss for an initial entry ..... Thats not a recommendation of course, lol.

 

[greggles]

CAZ continuing to take a risky but ambitious approach to growth by acquiring greenfield projects in hot sectors such as battery minerals and rare earths. A lot of analysis and due diligence must be going into project selection by CAZ management with a plan to create value through picking up undervalued projects with potential and developing them as rapidly as possible.

This particular landholding is large and most certainly has potential but it will take some doing to identify targets with the most potential and unlock value through exploration.

 

[barney]

CAZ continuing to take a risky but ambitious approach to growth by acquiring greenfield projects in hot sectors such as battery minerals and rare earths. A lot of analysis and due diligence must be going into project selection by CAZ management with a plan to create value through picking up undervalued projects with potential and developing them as rapidly as possible.

This particular landholding is large and most certainly has potential but it will take some doing to identify targets with the most potential and unlock value through exploration.

Yeah it looks a pretty good deal financially wise. Not costing them much to test the water so to speak. Market is pretty ho-hum about it which is understandable I guess given the time/work required before it shows any real value.

 

[greggles]

Yeah it looks a pretty good deal financially wise. Not costing them much to test the water so to speak. Market is pretty ho-hum about it which is understandable I guess given the time/work required before it shows any real value.

It seems to be a very well structured deal with no significant outlay required until a decision to mine is made. This means that CAZ will be able to invest funds into exploration knowing that if it doesn't work out they can walk away without having invested too much $ upfront.

There are many advantages to this approach to project acquisition and I like management's proactive approach to capital preservation.

My feeling is that they will move quickly on this project and the Sundown Lithium Project in Canada to try and kick some goals before a CR becomes necessary.

 

[barney]

There are many advantages to this approach to project acquisition and I like management's proactive approach to capital preservation.

My feeling is that they will move quickly on this project and the Sundown Lithium Project in Canada to try and kick some goals before a CR becomes necessary.

Yeah agree they run a tight ship financially which is always good to see from a Spec. Hope you are right on fast tracking the Project/s Greg. It would certainly be a bonus to dig up something substantial while they still have a few bob to throw around.

Currently a bit over $3.5 million still in the coffers according to the last Quarterly?

 

[greggles]

Currently a bit over $3.5 million still in the coffers according to the last Quarterly?

Yes, $3,793,000 at the end of the last quarter. Remarkably they managed to burn only $383,000 in the last quarter so I would say that a CR may not happen until the first half of next year if they can keep a tight rein on outgoings.

So they have some time to get the market excited but they will need to move quickly. I have criticised CAZ management in the past for taking their sweet time to get things done but now time is of the essence.

 

[greggles]

Exploration set to commence this month at the Sundown Lithium Project in Quebec, Canada. Access restrictions have been lifted and a pegmatite sampling campaign will be the first exploration step.

 

[barney]

Yeah the MD sounds pretty excited @greggles .

With less than 400M SOI and a market cap of less than 20M, there is plenty of room for movement If they happen to snag some good rock chips.

 

[Garpal Gumnut]

CAZ is my pick for the November comp. Buyers have been buying recently but from a quick look only to the value of $2k or $3k worth, so no excitement there, but they have many options bestowed upon themselves.

CAZ is described as a koala in that it eats, roots and shoots through. They value add ... do some exploration, have a punt, and onsell projects from what I can see.

@barney and @greggles have been interested which caught my eye more than their exploration of RE, Gold and Lithium here in Australia, in Québec which I am told is in Canada, and in Africa. It is trading at $0.036 which is about where our two ASF members were getting excited earlier this year.

A dart and worth a punt from my ilgotten gains on the Magnificent Seven on NASDAQ.

Don't do your own research, it will only disappoint you. Use a dart.

gg

 

[barney]

@barney and @greggles have been interested which caught my eye more than their exploration of RE,

Good luck Garps ... I actually still hold a decent amount of these little beggars, so if you win the Monthly, I will likely be cheering you on with appropriate gusto!

 

[barney]

Interesting little purchase earlier this morning I just noticed, $200K hit is not exactly chicken feed

Probably just Garps putting some spare change to try and win the monthly Comp

 

[greggles]

Yeah the MD sounds pretty excited @greggles .

With less than 400M SOI and a market cap of less than 20M, there is plenty of room for movement If they happen to snag some good rock chips.

Another update on their Canadian Projects this morning. 304 rock chip samples collected from the Sundown Lithium Project with lab results due in December.

REE mineralisation confirmed at the Carb Lake REE Project.

The carbonatite samples show two distinct populations. The majority of carbonatite samples have highly anomalous REE, Sr, and Nb. Surface grab sample results. The best grab samples include 2479ppm TREO, with NdPr comprising up to 22% of the TREO, and 2084ppm TREO, with NdPr up to 25% of the TREO.

 

[greggles]

CAZ is up 23.5% to 4.2c today on no news and with only 328,254 shares changing hands for a total turnover of just $13,154. It is clear that holders are not keen to sell CAZ shares at current levels and buyers are having to chase the shares in order to load up.

CAZ is feeling like a bit of a coiled spring at the moment. $16.5 million market cap isn't much and there is plenty of room to move if we get some good news.

 

[greggles]

CAZ in a trading halt this morning pending an announcement regarding a capital raising. The company is expected to recommence trading on Monday 27 November.

The company had $2.8 million in the bank at the end of the last quarter. Given the precarious state of global markets it's probably not a bad time to raise some more, but it will need to be accompanied by a detailed outline of future plans and objectives.

I look forward to reading the details next week.

 

[frugal.rock]

CAZ is feeling like a bit of a coiled spring at the moment.

The cap raise coiled spring
Gotta be suspicious of any stock these days on the cap raise side after some SP appreciation.

 

[greggles]

The cap raise coiled spring
Gotta be suspicious of any stock these days on the cap raise side after some SP appreciation.

Yes, today's announcement came as somewhat of a surprise. While $2.8 million isn't a lot, at their current cash burn rate they could have easily made it a few months into next year before raising capital... unless management are expecting their cash burn rate to increase.

I also think that raising capital now may be a defensive move as management may be expecting the Australian market to decline next year and so raising capital now may get them a better outcome.

Whatever the case, they should raise just enough at current levels to get them into a better position to raise more down the track. I am hoping that they raise no more than $5 million this time around and that they use that capital wisely.

 

[barney]

While $2.8 million isn't a lot, at their current cash burn rate they could have easily made it a few months into next year before raising capital... unless management are expecting their cash burn rate to increase.

Yeah there are a few questions on the timing @greggles

The Stock has promised much on a couple of occasions over the years. Managements credibility is possibly on the line at this point I reckon.

I don't see anything too sinister in it, but it could be/does look a bit like a "money for the boys" cap raise given we still had a few dollars in the kitty, and the next round of drill results (if good/as expected) could have catapulted the SP quite a bit higher (before the inevitable cap raise!?)

The good thing is, even if they are giving their mates a "free ride" at rock bottom prices, there should be an ensuing price spike at some point post cap raise after the initial drop ....

Its all a guessing game at this end of the market of course.

 

[greggles]

CR was relatively modest with $2 million raised at 3c a share. 69,633,333 new shares were issued. An additional $2.15 million was raised via the sale of CAZ's 15 million shares in Equinox Resources to Kobala Investments Pty Ltd.

So over $4 million has been raised with minimal dilution. This means CAZ should have at least $6.5 million in the bank, which is more than sufficient to move their projects forward for quite some time. Responsible capital management should be a priority moving forward.