LSE Share Talk approached Dave Reeves from Keras Resources with a number of questions from investors, Dave was happy to respond and this article will show both the questions and the responses returned.
1. Can we ask DR to try to ensure that future RNS’s focus on providing clear, unambiguous information that cannot be misinterpreted. An RNS is supposed to be releasing information to the market. Let’s not provide an opportunity for the market to falsely drive the stock down, when the underlying news is good.Today is a classic example. Payment had already been expected and as this has not yet been received I believe there has been a misunderstanding – ie bad news. However, worded differently, and including the finer detail provided in the interview, I feel that much more could have been made of the positive – ie from now on, ALL Norton processed material will get paid for (80% at least), within 14-21 days – this is LESS than half of the original 42 days. It also clearly shows how much Norton are on our side.
2. If additional fundraising is required (new asset acquisitions etc), PI’s would like to be involved. How many (by % of KRS share cap represented or by total £ amount available to invest in a new fundraising) would need to group together in order for that to be worthwhile for you to take up as a serious offer?
A) We would prefer not to raise any new equity for an acquisition. We always welcome such approaches though by PIs and suggest they send any through so we have a record of them in case this were to occur.
3. I would like to hear about the next steps after Grants Patch. We were promised an update on Bent Tree but that hasn’t arrived. Is the plan to work Bent Tree and Wycheproof in tandem with the Lindsay’s open sites, or are these two on hold for the foreseeable future? And are there any other open sites in the Norton Tribute that we haven’t yet heard about?
A) Bent Tree is part of Grants Patch and we will only mine one area at once as otherwise supervision becomes an issue. . The two main focusses of the company are on the POW underground and Lindsays Underground. We are looking at several new areas that have not been talked about but will be as we put together mining plans for them.
4. Do we have to sign an option for PoW as per Kalnorth or is this already done?
A) This is already in the tribute with Norton.
5. Is there a minimum production level at Kalnorth within the agreement?
6. What licences/permits are necessary for PoW/Lindsay’s and what is the likely turnaround?
A) The main licences are safety (Project Management Plan), Environment (Mining Proposal) and water (water licence). Generally, these take 6 weeks from submission if done correctly. We have had to do similar for the open pits so are well versed at this, although they are quite large documents especially for safety underground.
7. Are we doing the mine plan for these in house or are we contracting out with consultants?
A) We do both, however all consultants are people we have worked with in the past and are individual consultants, not large companies.
8. What is the broad time frame for known preparatory work on PoW, and what is yet to be ascertained?
A) Work is underway, physical work will begin shortly
9. Re POW. Previous estimates suggested replacement timbers would take 9-12months. How does additional money speed that process up?
A) We can do both undergrounds at once and are not waiting for cash from open pits before committing to either.
10. Can DR edit the Twitter description to reflect our status as a producer?
A) Good point
11. Is DR disappointed with the share price movement since the placing? Does DR consider Keras to be undervalued vs its peers?
A) We have no control of shareprice and can just do our best and believe that the market will set the true value. ASX gold miners seem to have more support at the moment.
12. Without going in to specific details, should shareholders look forward to forthcoming news flow that might have a material impact on the share price?
A) I am afraid this cannot be answered for obvious reasons!
13. Is there a possibility that progress can be tracked via Twitter again – as per the posts through Feb & March, which gave shareholders some very good insights?
A) We are trying to find a balance between information for shareholders in a fairly tight regulatory environment., so will probably be a bit less.
14. There seems to have been a persistent seller against a general strong buy market consensus. Does DR know who this is, or any reason for it?
A) There is no obvious seller
15. Have we had the results from the bulk sampling for Lindsey’s?
A) We have initial results for gold distribution in the deposit and continue to progress these tests.
16. When will we have the first quarterly production report, and will the reports contain full ore figures
and monies received?
A) We would like to get results out within 1 month of end of quarter which will provide a cash cost and ounces
LSE Share Talk would like to say a big thank you to Dave Reeves for taking the time to answer investors questions.