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KIS, KING ISLAND SCHEELITE LIMITED
nipper
post Posted: Jul 18 2021, 11:39 AM
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Posts: 10,053
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In Reply To: nipper's post @ Mar 17 2021, 05:56 PM

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 - King Island Scheelite

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.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 17 2021, 05:56 PM
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In Reply To: nipper's post @ Feb 4 2021, 09:58 AM

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.

now 32c, was 10c mid Feb




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Feb 4 2021, 09:58 AM
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The scheelite mine may reopen.... Talk of Tas Govt assistance now Tungsten prices are lifting.
.
https://amp-news-com-au.cdn.ampproject.org/...e0bb13f5f49a0a2



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
jahar
post Posted: Apr 25 2008, 06:45 AM
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In reply to: mondo45 on Thursday 20/12/07 03:26pm

Would today's article in "The Australian" have any bearing on the JV with Hunan? Here are the opening paragraphs:
"AT least 10 Chinese companies have withdrawn foreign investment applications to buy into Australian resources companies after pressure from the Rudd Government.

The Government has in recent weeks made it plain privately that it wants more time to consider the issue of the national interest in terms of ownership of the Australian resources industry.

The Chinese companies have been politely but firmly given the unprecedented message that it would be preferable to back off and resubmit any such applications to the Foreign Investment Review Board at a later date."
There does not appear to be much in the way of forum activity for this company.
I am a holder.
Jahar



 
mondo45
post Posted: Dec 20 2007, 03:26 PM
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In reply to: mondo45 on Thursday 20/12/07 03:21pm

Blast. Pressed the wrong button: Ignore previous post:

Cloggs:

The 2007 Annual Report showed the following capital structure:

Issued Shares 40,015,001
Converting Performance Shares 16,000,000
Options 1,000,000

Total fully diluted 57,015,001

Hunan Placement 4,450,000

Total fully diluted today 61,465,001

The CPS shares and the Options are convertible into fully paid ordinary shares on achievement of "Financial Close". Given today's announcement, we should assume that these all convert.

Thus the market capitalisation at today's closing price of 74c is $45.5 million. Doesn't seem that expensive.

DYOR

 
mondo45
post Posted: Dec 20 2007, 03:21 PM
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Cloggs: The 2007 Annual Report showed the following capital structure:

Issued Shares 40,015,001
Converting Performance Shares 16,000,000
Options 1,000,000

Total fully diluted 57,015,001

Hunan Placement

The CPS shares and the Options are convertible into fully paid ordinary shares on achievement of "Financial Close". Given today's announcement, we should assume that these all convert.

I don't think that they have issued any more shares other than the 4 million to Hunan announced today.

Thus the market capitalisation at today's closing price of 74c is $

 


cloggs
post Posted: Dec 20 2007, 01:55 PM
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4.5 million for 10% of KIS means 100% is 45 million. Presently total market cap 31 million. Or am I being over simplistic.

 
Wossname
post Posted: Dec 20 2007, 11:26 AM
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In reply to: mondo45 on Thursday 20/12/07 10:29am

Yes indeed Mondo45.

The KIS share price has gone down over time while other tungsten hopefuls have done much better, perhaps because some others' deposits are polymetallic. However, the relative attractiveness of KIS is now much improved IMO through KIS having financial and marketing support from the JV, and given that production status for KIS is more certain and more imminent. Plus, start-up risks are probably less than for others given that the deposit was mined successfully for many years in times past, and only closed (I understand) because of depressed tungsten prices.

Anyone like to update the potential earnings? I seem to recall them being impressive.



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Wasn’t that ....ahh....errr....you know, errr....Wossname?

Following me is like following a Tates compass - and he who has a Tates is lost. I’m not qualified to give investment advice, and my posts may include unsupported speculations, so do your own research. I may or may not be invested in any stocks or sectors mentioned, and may buy or sell without notice.
 
mondo45
post Posted: Dec 20 2007, 10:29 AM
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A good outcome.

 
Wossname
post Posted: Dec 20 2007, 09:26 AM
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KIS now confirms that the joint venture with Hunan Non-ferrous Metals Corp has been signed:

20 December 2007

ASX Announcement

King Island Scheelite and Hunan Nonferrous Metals Corp sign joint venture agreements to redevelop the King Island scheelite mine (Project)

In August of this year King Island Scheelite Ltd (ASX:KIS) and Hunan Nonferrous Metals Corp (HNC) announced that the two companies had signed a Principles of Agreement which outlined how the two companies proposed to jointly redevelop the King Island scheelite mine located on King Island, Tasmania. In summary, this agreement anticipated that

• KIS will issue 4,450,000 ordinary shares to HNC, which will be equivalent to about 10% of issued KIS capital. This placement will be at the price of $1.00 per share;

• one representative from HNC will join the KIS Board;

• HNC will contribute 50% of the construction and development costs of the Project;

• HNC will provide debt funding to KIS to fund the remaining 50% of the Project. This loan will attract an interest rate of 8%, and repayments of the loan will be matched to a proportion of KIS’s share of the cash flow from the Project;

• an unincorporated Joint Venture will be created to share equally ongoing revenue, operating costs and post construction capital costs;

• KIS will manage the construction and operation of the Project; and

• output from the Project will be sold on the most favourable terms available in the market.

KIS is pleased to announce that the POA has been converted into a series of formal agreements which both parties signed in Sydney yesterday evening. These agreements reflect the provisions of the POA. An unincorporated joint venture to be known as the Dolphin Joint Venture (DJV) has been established with subsidiaries of KIS and HNC as equal partners.

The agreements are subject to approval by the Australian Foreign Investment Review Board, the relevant Chinese authorities and KIS shareholders.

These final approvals are expected to be received in the first quarter of 2008. Construction of the Project will begin immediately thereafter with the commencement of detailed engineering and the procurement of long lead time items of processing plant equipment. Construction is estimated to take approximately 21 months, and first production of tungsten concentrate is planned for the fourth quarter of 2009.

As previously announced, the DJV partners anticipate spending a total of $110 million in re-development of the mine, processing plant and associated infrastructure. The initial phase of the project will result in the production of an average of 300,000 mtu (an mtu being 10 kg) of WO3 per annum for 11 years, with production varying according to head grade mined from the pit. The potential for further project life beyond that period will be the subject of studies by the JV partners in the future. These studies will focus on known resources below the currently planned pit, as well as exploration targets that have been identified in the surrounding tenements currently held by KIS but which will form part of the DJV.

Following the signing of the agreements the Chairman of KIS, Tony Haggarty, said “This is by far the most significant milestone to date for both KIS and the King Island Project. These agreements mark the start of the physical development of this exciting project, and with the partnership of HNC bringing financial strength and technical expertise the future looks very bright indeed for both the Project and KIS. The King Island deposit remains one of the premier tungsten deposits in the world, and both KIS and HNC very much look forward to unlocking its contained value, and to exploring options to add even more value to the Project.”






--------------------
Wasn’t that ....ahh....errr....you know, errr....Wossname?

Following me is like following a Tates compass - and he who has a Tates is lost. I’m not qualified to give investment advice, and my posts may include unsupported speculations, so do your own research. I may or may not be invested in any stocks or sectors mentioned, and may buy or sell without notice.
 
 


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