UK 20:09 Sunday, 8 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
What on earth made Keras Resources (KRS) boss Dave Reeves travel thousands of miles from Oz to London, only then to head up to Walsall and what happened in the black country shit-hole? I only ask because Reeves arrived in Walsall on Saturday 9th April to do a presentation after which the shares collapsed ahead of a placing announced today. You may not know much about Walsall other than that it is a post industrial shit hole but let me enlighten you.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
D_Stone
I believe it was only a month or so ago that the good people of SP Angel highlighted that KRS were fully funded and that going forward there would be no need for future placings due to cash flow from operations.
How wrong and insightful this incident has been in highlighting the integrity of Mr. Reeves.
Rec0very Stock
Tom if you have 45 mins you can see the whole presentation and Q&A here:
http://www.lsesharetalk.com/share-news/dave-reeves-keras-resources-plc-krs/
You will note that nowhere does he say we need to raise money right now, indeed the talk of non dilutive forms of finance, which are not available, as KRS does not own the gold just the right to mine it under a tribute agreement, could have been interpreted either way – management as major shareholders are not keen on it, but they do not really have any other options if they need to raise money.
It was obvious that the shares were about to retrace even before the presentation – it has 3 bagged since the New Year and went down on seemingly good news the day before the presentation. As a long term holder, I said so on the ADVFN BB, only to be decried as a deramper by some prick who maintained there was solid support and the shares were headed to 5p LOL.
KRS is actually a good little company where the management have put a lot of their own money in both in buying shares and providing loans, whilst factors beyond their control went against them. They have a very interesting story to tell and have just started to generate revenue. They will need to raise more money in the future to get another major project, which they are still waiting for a licence for, going but that should be reduced by the cash generated by these projects they are advancing and should be at a much higher price.
The talk was of recycling the revenue to generate the cash needed to advance the projects. However it was clear that that would mean quite a long wait before being able to get to where the real money is. Overall I am not unhappy that the money has been raised. However they are an AIM microcap miner and therefore have to play all the usual tricks to raise it. Those who paid 1.8p will see the shares get back there eventually as the shares are worth more than that based on the cash that can be generated from the projects, however it is galling to see the shares going so cheaply, but sadly that is the reality of raising money on AIM. Overall it is still better that they have the money to progress the projects (it is not a keep the lights on spunk it up against the wall placing) than they miss the opportunity to get those projects in to play sooner, they only have 5 years guaranteed under the tribute agreement, though it could get extended, thus sitting there doing nothing for 2 of those years whilst the cash dribbles in from their lower grade open pits, would not have delivered the same value. Overall a placing for the right reasons, just done in the usual shit AIM way, because that is the only way to do it.
bearfacts
Seems strange place to go, perhaps it’s a BBM waste land (plenty of nearly broke suckers).
He did a podcast on the Clowns site on Monday and their was absolutely no mention of this placing, no 453 it was and you have JW querying the sp movement and DR saying people sold out as they had ‘wants & desires’. Oh err missus!
You have JW saying he was ‘more intently’ watching the stock, and amazingly DR saying it was a ‘good buying opportunity’, as you will know the Walsall show was organised by sharetalk and promoted by Shard SB so would this and the Clown show constitute market abuse? Being material information……
All the best
Rec0very Stock
Bearfacts,
The fact that a placing was underway was material info and therefore he would have been wrong to say so at Walsall or on the clown show.
It does not matter where you do such presentations as long as you video it, link to it on your website and RNS to say you have done so – all of which was done.
Judging by the number of people who asked questions and DR knew them all by first name there probably were not very many people at the presentation (maybe 10), which was shared with another AIM gold mining company.
It is the same old conundrum: don’t ramp the shares ahead of a placing and do the placing at a lower price – flippers still get their discount, probably an even bigger one because there is not the volume to flip into or do what everyone else does and ramp the shares ahead of a placing.
KRS does have a genuinely good story to tell, they have a really good reason to raise the money and the shares 3 bagged from new year on that story. The story has not changed and ultimately shareholders interests are better served by having the money and living with the dilution than by not having the money and watching the juicy targets go unmined while they wait for the CAPEX to be funded from revenues.
A system where shares suspend while a fundraise is done is the way ahead, but that would rely on finding genuine investors rather than bucket shops and flippers and that is hard down at the bottom end of AIM, even if the management are genuinely competent and aligned with shareholders, which is the case here.
Long termer
TW would do better to watch the presentation and inform himself rather than speculating like an utter tw@t. What is it he expected – for DR to inform everyone of a placing before the market is told? Say’s a lot if that was the case.
KRS is a solid company and DR and the BoD are top blokes intent on minimal dilution with big skin of their own in the game. If you had bothered doing any research at all before writing this garbage then you would know the placing is to ensure earlier than planned funding to get the PoW tribute up and running during the 5 year tribute (rather than seeing the clock run down further before they get to it).
KRS will be cash generative in a matter of weeks from ore (Anomoly 22) being graded right now. PoW wiil increase cash/profits well beyond what was initially planned for this year. Win win and just over 1 million from a placing will see a far greater cash profit in return.
Debt free cash generating Ozzie gold miner on AIM – yet still you need to have a go. Take a day off and don’t be a tw@t all your life.