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(KRS) Keras Share Chat

Discussion in 'Keras Resources general chat' started by Steamy, Mar 22, 2016.

  1. Groucho

    Groucho Member

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    12th April 2022

    Keras Resources plc ('Keras' or 'the Company')


    Operational Update


    Keras Resources plc (AIM: KRS) today provides an operational update on the high-grade Diamond Creek organic phosphate mine ('Diamond Creek') in Utah, USA. Management recently hosted the annual inspection and site visit from the Utah State mining and environmental departments and received all ongoing approvals in line with the project's licence obligations. The team will now commence the annual rehabilitation on the access roads and start trucking the approximately 5,200 tons of run-of mine phosphate rock remaining at the lay-down area from last year's mining campaign to the Spanish Fork processing facility. An additional 1,500 tons of blasted ore will similarly be excavated and hauled from the pit to Spanish Fork during the early summer months.


    Russell Lamming, CEO of Keras, commented, "Post acquiring 100% ownership of this asset it is great to have all our permits and authorisations in place and be back on the mountain as we move into Spring. As part of the operational cycle of our project we will now ensure safe access for the mining season as we do each year and then start trucking additional run of mine ore to Spanish Fork as we start to ramp up our Spring marketing programme. We appreciate the ongoing support from the State authorities and we look forward to ongoing progress as we continue our value engineering processes across the business for the rest of the year."
     
  2. Groucho

    Groucho Member

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  3. Groucho

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  4. Groucho

    Groucho Member

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    29 April 2022

    Keras Resources plc ('Keras' or 'the Company')


    Oversubscribed Broker Option Placing


    Keras Resources plc (AIM: KRS) is pleased to announce that further to the Company's announcement released on 26 April 2022, the firm expressions of interest from investors for the Broker Option Shares has exceeded the 625 million Broker Option Shares that are potentially available for investors to purchase. Subject to shareholders approving the additional share issuing authorities required for the Broker Option, the Company expects to raise gross proceeds of £750,000(before expenses) through the exercise of the Broker Option by the Company's joint brokers, Shard Capital Partners LLP ('Shard') and SP Angel Corporate Finance LLP ('SP Angel'). As announced previously, each Broker Option Share will have an attached warrant to subscribe for 1 new Ordinary Share at any time up to 31 May 2024, at an exercise price of 0.18p per new Ordinary Share ('Warrants').


    Russell Lamming, CEO of Keras, commented, "It is great news to have had expressions of interest that exceed the number of shares available under the Broker Option. I would like to thank all our shareholders and new investors who indicated an interest in this offering. As outlined before, we are fully committed to driving shareholder value through maximizing the potential of the Diamond Creek asset, optimizing efficiencies and generating cash flows. We look forward to taking the Company forward and ramping up operations from here."


    As detailed in the announcement of 26 April 2022, further authorisation is required to extend the share capital allocation and the Company will convene a General Meeting to obtain additional share issuing authorities on 16 May 2022. The new Ordinary Shares to be issued prior to the General Meeting are being issued pro rata with the balance to be issued under the new authorities to be obtained at the General Meeting.

    The Company expects to make a further announcement on 3 May 2022, regarding the Broker Option and the anticipated timetable for the completion of a placing of the Broker Option Shares.

    Keras Resources PLC - Oversubscribed Broker Option Placing #KRS @kerasplc https://www.voxmarkets.co.uk/rns/announcement/922a8562-6aac-4f44-a91f-8db0454877a2
     
  5. Groucho

    Groucho Member

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  6. Groucho

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  7. Groucho

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    LSE - Pinecone54 RE: Who is attending the GM?

    Whilst it’s disappointing that I was one of two investors at said meeting, can understand why!

    Business was over in a very short while, even the coffee was still hot!

    The main thrust of questions then concentrated on DC and given our new position, there appears to be many avenues we can go down !
    Russell explained and showed samples of the varying forms the mining takes, from rock chips to powder!
    Each having their respective traits and the likely lead times to get responses from the various end users!
    However, as we have been at it for some months now Russell explained that a few customers had asked for their requirements be held in storage and upfront payments made to ensure continued supply!
    Just need more of them!

    We also touched on “carbon credits” it is something we are looking at not from investments but being able to offer our certificates to farmers who then can use credits as a subsidy to farming!

    On the “elephant in the room” it’s still on going and whilst nothing concrete came out, the board are hoping for their possible entry into the commonwealth would see a need to show how well they handle a U.K. company, being considered before admission!

    There is likely to be an AGM in July , where an update on the various issues will be covered!

    But for me it was a positive meeting, certainly worth attending even if it was sparse!
    Now on the road back for three hours ( no texting )

    PC
     
  8. Groucho

    Groucho Member

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    17 May 2022


    Keras Resources plc ('Keras' or 'the Company')


    Issue of new shares


    Keras Resources plc (AIM: KRS) is pleased to announce that the Broker Options over 625,000,000 new ordinary shares of 0.01p each in the Company, as set out in the Company's announcement on 26 April 2022, have been duly exercised, following the passing of resolutions at the General Meeting of the Company held on 16 May 2022.

    The Company has also issued 52,500,000 new Ordinary Shares at a deemed price of 0.12 pence per share in lieu of fees due by the Company, as set out in the announcement of 26 April 2022.

    Each of the 677,500,000 new Ordinary Shares will have an attached warrant to subscribe for 1 new Ordinary Share at any time up to 31 May 2024, at an exercise price of 0.18p per new Ordinary Share

    Application has been made for 677,500,000 new Ordinary Shares, which will rank pari passu with the existing Ordinary Shares of the Company, to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence at 8:00 a.m. on or around 18 May 2022.

    Following the issue of the new Ordinary Shares, the total issued share capital of the Company will consist of 7,973,573,068 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury. Therefore, the total current voting rights in the Company following Admission will be 7,973,573,068 Ordinary Shares and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
     
  9. Groucho

    Groucho Member

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    9 June 2022


    Keras Resources plc ('Keras' or 'the Company')

    Shareholder/Investor Meeting and Presentation


    Keras Resources plc (AIM: KRS), announces it will be hosting a meeting and presentation, followed by a Q&A session and drinks reception, for shareholders and investors, at 18.00hrs on 28 June 2022 at Davy's at St James', Crown Passage, Pall Mall, London, SW1Y 6QY.

    The presentation, which will be made available to all shareholders prior to the meeting, will provide an update on progress at its wholly owned, high-grade phosphate Diamond Creek operation, Utah, USA as the Company continues to build its position in the fast-growing organic phosphate to fertiliser market, as well as an overview of plans for the business going forward.

    Keras' Board welcomes the opportunity to host the meeting and meet with shareholders and prospective investors.

    Pre-registration is required for attendance to the meeting. To confirm attendance please email annabel@kerasplc.com.
     
  10. Groucho

    Groucho Member

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    30 June 2022

    Keras Resources plc ('Keras' or the 'Company')

    Final Results

    Keras Resources plc (AIM: KRS) announces its final results for the 15 months ending 31 December 2021.

    Highlights

    Utah - Diamond Creek Phosphate Mine ("Diamond Creek") - one of the highest-grade organic phosphate mines in the US, a fully integrated mine to market asset

    · Spanish Fork milling plant commissioned during June 2021 to increase installed capacity and enable flexibility to produce a variety of sized organic rock phosphate products

    · 8,520 tonnes of phosphate mined at Diamond Creek during the summer of 2021

    · Total sales of 4,657 tons from June 2020 through to May 2022

    · Increased ownership of Diamond Creek in March 2022 from 51% to 100% for a total consideration of US$3.2m

    · 2022 summer mining season currently underway at Diamond Creek to produce milled product for the spring 2023 season

    · Construction of a downstream granulator plant is planned for 2022 to further expand range of phosphate products to attract a price premium in markets not currently supplied

    · Marketing and sales being strengthened and new offtake agreements with repeat customers negotiated

    · Focus for 2022 and beyond is developing market share in US organic fertiliser industry and building Diamond Creek into the premier organic phosphate producer in the US


    Corporate

    · £550,000 and £1,000,000 fundraising completed December 2020 and January 2021

    · Further £1,950,000 (before costs) raised at a premium and supported by a new cornerstone investor, First Uranium Resources Ltd, a Canadian public company active in the North American phosphate market, to facilitate growing a portfolio of North American phosphate projects

    · Board Changes

    o Graham Stacey appointed to the Board in November 2021 and assumed responsibility for the Diamond Creek mine in March 2022 - assumed the role as CEO on 1 June 2022

    o Russell Lamming has stepped down as CEO and assumed the role as Non-Executive Director as of 1 June 2022, and will become Non-Executive Chairman as of 1 September 2022

    o Brian Moritz stepping down as Non-Executive Chairman as of 1 September 2022, will assume the role as Non-Executive Director and remain as Company Secretary


    Graham Stacey, Keras Resources Chief Executive Officer, commented, "2021 was not without its challenges, however, we were very pleased to have announced the acquisition of full ownership and to have assumed full operational and marketing control of Diamond Creek in March 2022. The completion of a £1.95m capital raise which saw First Uranium Resources Ltd come in as a cornerstone investor, and the acquisition of an additional 7% in the market by First Uranium associate AxCap Ventures was particularly encouraging.

    "We will now focus on delivering on the current summer mining season at Diamond Creek to September 2022, continue to negotiate new offtake agreements with repeat customers and more importantly identify new outlets for our existing product mix. Near-term growth plans also include installing a downstream granulator plant which will allow us to further broaden our current product offering, attracting premium prices in the markets that those products bring.

    "We believe the Company is excellently positioned to deliver into the growing organic agricultural sector underpinned by the macro-economic tailwinds of the global fertiliser markets. Ultimately our mission is to penetrate and increase our market share in the US organic fertiliser industry and to build Diamond Creek into the premier organic phosphate producer in the US.

    "I look forward to working closely with our new cornerstone investor(s) to lever off synergies that their investment will bring and continuing to build production and sales at Diamond Creek, as we move forward in this exciting chapter in the Company's evolution and growth."


    Posting of Annual Report and Notice of AGM and General Meeting

    Copies of the Company's full Annual Report and Financial Statements (the "Annual Report") will be made available to download from the Company's website shortly at https://www.kerasplc.com/constitutional-documents/ and will also be posted to shareholders today along with the notice of its Annual General Meeting ("AGM") and General Meeting which are to be held at 11am and 11.15am respectively on the 25th July 2022.


    Chairman's Statement


    I am pleased to provide an update on our progress since my last report and set out our outlook for the business going forward.


    The main activity of Keras is now in developing the Diamond Creek organic phosphate mine in Utah, USA, and we announced on 30 March 2022 that Keras had increased its ownership from 51% to 100%. Subsequently, Keras concluded a £1.95m (before costs) fund raising, underpinned by a new cornerstone investor who is focussed on growing a portfolio of North American phosphate projects.


    The Diamond Creek phosphate mine

    Despite facing challenges throughout the reporting period, we continued to make significant progress with our fully integrated mine to market operation at Diamond Creek in Utah which is believed to be one of the highest grade organic rock phosphate deposits in the US.

    The Diamond Creek phosphate mine, which is situated on an 840 acre Federal Lease, and the Spanish Fork Processing Facility, are owned and operated by Falcon Isle Resources LLC and Falcon Isle Holdings LLC (collectively 'Falcon Isle'). Keras initially acquired a 51% equity interest in Falcon Isle in July 2020 for nominal consideration by agreeing to loan a total of $2.5m to Falcon Isle in tranches. The last tranche of the loan was advanced at the end of December 2020, so that Falcon Isle has been accounted for as a subsidiary of Keras for 2021. Post-period end, in March 2022, we were pleased to announce that Keras had agreed to acquire our partner's 49% equity interest in Falcon Isle, increasing our holding from 51% to 100%, for a total consideration of US$3.2m, which includes loans repaid to the vendor totalling US $1,816,527. This agreement made Falcon Isle a wholly owned subsidiary of Keras, allowing Graham Stacey, previously COO of Keras, to take over full management control of the operation, and become CEO of the Group. Importantly, the agreement avoided a lengthy and costly litigation process, operations recommenced immediately, and we continue to meet customers' demand for our phosphate product.

    Located approximately 80km south-east of Salt Lake City, Diamond Creek is one of the highest-grade organic phosphate deposits in the US, and our mission going forward is to build the operation into the premier organic phosphate producer in the US. Our focus and market segment is in supporting sustainable agriculture and we are strong advocates for the benefits of enhancing soil health. Our organic phosphate fertiliser products can help farmers realise better crop growth and yields while reducing the soil degradation seen when farmers use chemically manufactured fertilisers.

    The mine is fully permitted, and the Spanish Fork processing plant is close to infrastructure and ideally located to take advantage of Salt Lake City's resources including labour, supplies, industrial engineering and financial services. The integrated mining and processing operation has compelling economics with a low capex, simple low-intensity seasonal mining operation and our in-house processing plant has flexibility to beneficiate a variety of organic rock phosphate products throughout the period. The mined material only requires crushing, milling and bagging before being sold as high-grade organic rock phosphate fertiliser - a 23% total phosphorus pentoxide ('P205') premium product and importantly with minimum 12% available P205 which is significantly higher than our competitors.

    The project has a pre-stripped area with production drilling information delineating approximately 2 years of planned production still in-situ. However, we believe there is significant scope to increase the current life of mine at Diamond Creek with historic "surface mineable resources" representing in excess of 60 years of production. Part of the funds raised recently will be used to establish a NI 43-101 compliant mineral resource at Diamond Creek.

    Immediately post Keras' injection of funding into Falcon Isle, beneficiation was undertaken on a toll basis with a key contractor. The Company subsequently took the decision to move processing in-house and construct a new plant at Spanish Fork, 30km from Diamond Creek. This was to both increase the installed capacity and enable flexibility to beneficiate a variety or organic phosphate products to offer across our marketing campaign. The plant was fabricated and shipped from Shanghai, with construction commencing on site in Spanish Fork in February 2021 and commissioning was successfully completed at the end of June, 2021.

    In November 2021 the Company announced it was in dispute with its 49% partner in Falcon Isle due to a capital shortfall resulting in all operations at Diamond Creek being temporarily halted and Keras engaging local US legal representatives to enforce its rights under the terms of the initial transaction. The 2021 mining season had already been completed prior to operations being suspended and sales continued to be made from processed material in stock over the winter period.

    In 2021, 8,520 tons of phosphate were mined and delivered to the laydown area at Diamond Creek. Sales totalled 4,657 tons of phosphate from June 2020 through to May 2022. Since Keras took control of the marketing function and with both the mining and processing facilities now operating as planned developing market share will be our primary focus for the next two years. Production rhythm is key to the supply of both consistent quantity and quality products which Keras' operational control and our recent fund-raise has now enabled.

    A key component of our marketing effort will be growth tests across a range of crops and soil types. This process is planned to run for the balance of 2022 and will provide focussed market feedback to support of our product use across crop types, regions and planting seasons.

    We are now looking forward to commencing our mining season at Diamond Creek which takes place during the summer season from July to September, while the mine site is free of snow.


    Nayéga manganese mine / Togo

    On the 18 October 2019 the Council of Ministers of the Republic of Togo published a decree granting the right for large-scale exploitation of the manganese deposit at Nayéga to the Company's subsidiary, Société Générale des Mines ("SGM"). Since that date the Company has concentrated its efforts on obtaining the required Exploitation Permit. The terms of the permit and associated protocols have been agreed, and SGM has been converted from a private to a public company, as required by law and in compliance with the draft Mining Convention. However, the exploitation permit approval has not been forthcoming.


    Financial review

    The Consolidated Statement of Comprehensive Income for the 15-month period shows a loss of £1,948,000 (2020 - loss £1,257,000). The results of the two periods are not strictly comparable due to the different lengths of the periods reported on as a result of the change in year-end to 31 December. The loss for the period under review has suffered from delays in realising the value of the Diamond Creek mine which are referred to above.

    Also included is a technical loss amounting to £398,000 due to the IFRS requirement to treat the previous minority interest in Falcon Isle as having been disposed of and the 51% majority acquired as a separate transaction.

    During the period Keras undertook two fund raisings, in December 2020 and January 2021, raising £550,000 and £1,000,000 respectively (before costs), primarily to facilitate finance for the Diamond Creek mine, and also for working capital generally.

    In May 2022 Keras raised a further £1,950,000 (before costs) at a premium to the previous share price, of which £960,000 was subscribed by a new cornerstone investor, First Uranium Resources Ltd, a Canadian public company active in the North American phosphate market. These funds will be used for the first tranche of US$800,000 of the cost of acquiring the former minority interest in Falcon Isle, the establishment of a NI 43-101 compliant Mineral Resource at Diamond Creek, expansion of the Falcon Isle business into other fields of activity and general working capital.

    First Uranium initially acquired a 10.03% interest in the Company by participating in the above Capital raise and, subsequent to this, AxCap Ventures, an associated company of First Uranium, accumulated a further 7.04% interest in Keras through on-market trades. First Uranium's support for the Company is part of their focus on developing a portfolio of assets in the North American phosphate market as it sees this as a key growth commodity within the resource sector.


    Directors and Management

    Graham Stacey, who has been COO since 2020, was appointed to the Board in November 2021 and assumed responsibility for the Diamond Creek mine in March 2022. He is in the process of relocating from Johannesburg to Utah. On 1 June 2022 Graham took over the role of Chief Executive Officer from Russell Lamming, who has become a Non-Executive Director. I would like to welcome Graham to the Board and thank Russell for his untiring work during his tenure as CEO.

    Later in the year, on 1 September 2022, Russell will take over from me as Non-Executive Chairman. I will remain a Non-Executive Director and Company Secretary, and I will continue to provide oversight of the Company's finances.


    Outlook

    With the closing of the £1.95m capital raise and securing 100% of our high-grade organic phosphate Diamond Creek mine, we believe the Company is excellently positioned to deliver into the growing organic agricultural sector. This sector is underpinned by the macro-economic tailwinds of the global fertiliser markets, and we remain bullish on our premium phosphate product and our position as we continue to build market share.

    Plans for expansion to broaden our product mix are under way and we continue to negotiate new offtake agreements with our repeat customers. The construction of a downstream granulator plant is planned for 2022 to allow us to further expand the range of our products from five sized dry products to include two sized granulated products which will attract a price premium in markets that we are not currently supplying. Now that we are fully in charge of operations the Directors are confident that Falcon Isle will be a profitable and valuable asset for the Group, and we look forward to updating our shareholders on our progress as we continue to ramp up the production profile and build our position and market share of the fast-growing US organic phosphate market.

    Finally, I would like to take this opportunity to thank my colleagues on the Board and our management team for their hard work, and shareholders for their continuing support.


    Brian Moritz

    Chairman

    29 June 2022



    Strategic Report


    Having acquired 100% control of the Diamond Creek asset, the Group's strategy is to progressively enhance shareholder value through building market share for its products within the North American organic fertiliser market. At the same time ongoing value engineering initiatives will continue to streamline operations and rationalise costs to ensure consistent product quality and volumes, all aimed at increasing margins. In the longer-term, enhancing value of that asset will involve both organic expansion as well as identifying value-accretive projects/businesses with natural synergies to increase scale and to add value to the Company.

    Diamond Creek is one of the highest-grade organic phosphate mines in the US, and the Company's purpose is to build the operation into the premier organic phosphate producer in the US. Keras supports sustainable, regenerative agriculture and is an advocate for the benefits of enhancing soil health. Diamond Creek's organic phosphate fertiliser products can help farmers realise better crop growth and yields, reduce soil degradation, build and maintain soil organic matter to improve overall soil health, and ultimately reduce CO2 levels in the atmosphere through carbon sequestration.

    Organic fertilisers' significantly lower carbon footprint relative to traditional synthetic/chemical fertilisers and will continue to support demand and pricing for organic replacements including rock phosphate. Keras is therefore also looking at developing opportunities around carbon sequestration and the associated carbon credits to further augment its business and enhance shareholder value. Diamond Creek's organic phosphate products have the potential to tap directly into this rapidly growing market and the Company is looking at developing and enhancing the value of this aspect of its portfolio and in-turn generate greater returns for shareholders.

    The Group's business model has established the Company as an efficient, high-quality and low-cost producer direct into the North American fertiliser market.

    During the reporting period the Group was focussed largely on developing operations at Diamond Creek to maximise operational efficiencies, build market share and generate cashflow. The mine is owned by Falcon Isle, in which the Company held a 51% equity interest during the reporting period, subsequently increasing this to 100% in March 2022.

    The Company is aware of a national geophysical survey being undertaken by the Togolese Ministry of Mines and Energy and we do not expect the permitting process at our Nayéga manganese project to be concluded prior to the survey being completed.

    In exploring and developing mines to exploit mineral deposits, the Group accepts that not all its exploration will be successful but also that the rewards for success can be high. It therefore expects that its shareholders will be invested for potential capital growth, taking a long-term view of management's good track record in mineral discovery and development. The Directors have continued to invest in the Company and currently hold approximately 21.3% of the issued shares in Keras, after allowing for the substantial fund raisings since the period end. We believe this stake provides further evidence of the Board's belief in and commitment to its strategy.

    To date, the Group has financed its activities through equity raisings. As the Group's projects become more advanced, the Board will seek mining and/or offtake finance and may also investigate strategic opportunities to obtain funding for projects from future customers via pre-payments, royalties, and other marketing arrangements.


    Financial and Performance Review

    Turnover in the period under review comprised sales of phosphate fertilisers by Falcon Isle. Turnover of £452,000 was constrained by construction of the processing plant, which was only operational for the final six months of the period, as well as the problems with working capital referred to previously.

    The results of the Group are set out in detail in the financial statements. The Group reports a loss for the period of £1,948,000 (2020: loss £1,257,000).

    Fixed assets total £5,375,000 (2020: £1,332,000), which includes the bulk sample plant and associated infrastructure at the Nayéga project, and the Falcon Isle processing plant totalling £544,000 (2020: £262,000).

    The Directors have assessed the carrying values of Falcon Isle and SGM and no impairment has been deemed necessary.


    Key Performance Indicators (KPIs)


    During the period the Board monitored the following KPIs:

    · Cash flow and working capital:

    o Short (<3 months) and long-term cashflow models are prepared to monitor and forecast the Group's funding needs;

    o Management accounts prepared on a monthly basis for the Group's key subsidiaries and quarterly on a consolidated basis.


    Mining projects


    North America

    Keras acquired an interest in Falcon Isle, holder of the Diamond Creek phosphate mine, in July 2020, and increased its interest to 51% in December 2020. Keras acquired the outstanding 49% post the reporting period in March 2022. The mine is situated approximately 80km SSE of Salt Lake City, Utah. Diamond Creek is a fully permitted, high-grade direct shipping ore ("DSO"), low capex organic phosphate mine, which has significant historical estimated in-situ tonnage (mineral resources have not been classified according to modern International Reporting Standards) with sufficient phosphate ore exposed in-situ to provide for the 2022 and 2023 mining seasons before any overburden stripping is required. The phosphate mineralisation is concentrated in the shale beds of the Meade Peak Member of the Phosphoria Formation. The mineralised zone is c.3m thick at the base of the Meade Peake Member and averages 23% total P2O5 with guaranteed available P2O5 of 12%. Historic reports vary with "surface mineable resources" ranging from 3.10Mt to 4.60Mt. At an internally estimated peak production rate of 23.5ktpa, the opencast resources alone represent a significant mine life.

    The 2021 mining campaign was completed in October 2021 with a total of 8,520 ore tons extracted from the mine. Beneficiation during the reporting period was undertaken through a combination of contractor toll-milling (producing 10mesh and -50mesh products) and Falcon Isle owned milling infrastructure. A new high-pressure rolls milling plant was successfully commissioned during June 2021 which has the capacity to produce steady-state product of 23,500 tons per month. The plant comprises front-end feed, primary crush, milling, dust extraction, 50lb and 1ton bagging circuits to produce a range of products including -50 mesh, -100 mesh and -350 mesh powders in either 50lb bags or 1ton bags (totes). A granulation plant was procured and delivered to our Spanish Fork site during September 2021 with construction and commissioning planned for the second half of 2022 which will further broaden our product range to include high margin granulated organic phosphate.

    The product has received Organic Certification by all three key certification agencies in the USA - California (CDFA), Washington State (WSDA) and the federal Organic Materials Review Institute (OMRI). As a Direct Shipping Ore (DSO) it requires no chemical/synthetic upgrade processes. Our rock contains low heavy metal impurities, significantly higher available P2O5 than any other organic rock phosphate in North America, and a calcium content of >25%.


    Africa

    Keras currently holds an 85% interest in the Nayéga manganese project in Togo, which covers 19,903 hectares in northern Togo, held through Société Générale des Mines SA (SGM). As set out in the Chairman's Statement, SGM is still waiting for the issue of the exploitation permit.


    Sustainability

    Keras is committed to responsible mining and upholding ESG best practice across our business. We care about all our stakeholders and are focused on looking to create value and benefits for all whilst seeking to manage and mitigate the potential impacts that our operations may have. We are focussed on mining an essential resource that can contribute to a more sustainable future and importantly sustainable and regenerative agriculture. With the Diamond Creek mine we are running a simple operation with only crushing & milling requirements and will look to maintain our low carbon footprint. We are focused on meeting our commitments across the ESG space and will continue to be proactive in this area as we look to develop and sustain a positive legacy.


    Risk Management

    The Board regularly reviews the risks to which the Group is exposed and ensures through its meetings and regular reporting that these risks are minimised as far as possible.


    The principal risks and uncertainties facing the Group at this stage in its development are:


    Market Risk

    Unlike marketing globally traded, indexed commodities into international markets, growing market share within the niche organic fertiliser market within North America presents risk in terms of pricing and volume.

    The Group has employed a head of marketing to develop and implement a marketing strategy which will be a key focus area to build market share. The business has a range of existing customers, three of which are anchor clients having provided commitments to purchase a pleasing base load of our planned annual production. Our marketing strategy rollout will include presence at industry trade exhibitions and conferences, as well as regular regional direct contact visits with a comprehensive schedule of contacts within the wholesale and distribution segments of the organic fertiliser market. Our business model will largely be driven by uptake from co-operative type clients with wide distribution networks, rather than selling directly to farmers themselves.


    Exploration Risk

    The Group's business has been primarily mineral exploration and evaluation which are speculative activities and whilst the Directors are satisfied that good progress is being made, there is no certainty that the Group will be successful in the definition of economic mineral deposits, or that it will proceed to the development of any of its projects or otherwise realise their value.

    The Group aims to mitigate this risk when evaluating new business opportunities by targeting areas of potential where there is at least some historical drilling or geological data available.


    Resource Risk

    All mineral projects have risk associated with defined grade and continuity. Mineral reserves and resources are calculated by the Group in accordance with accepted industry standards and codes but are always subject to uncertainties in the underlying assumptions which include geological projection and commodity price assumptions.

    The Group reports mineral resources and ore reserves in accordance with internationally approved codes where our operations/projects are located, which set minimum standards for public reporting of mineral exploration results, mineral resources and ore reserves.


    Development Risk

    Delays in permitting, financing and commissioning a project may result in delays to the Group meeting development and/or production targets. Changes in commodity prices can affect the economic viability of mining projects and affect decisions on continuing exploration activity.


    Mining and Processing Technical Risk

    Notwithstanding the completion of metallurgical testwork, trial mining and pilot studies indicating the technical viability of a mining operation, variations in mineralogy, mineral continuity, ground stability, ground water conditions and other geological conditions may still render a mining and processing operation economically or technically non-viable.

    The Group has a small team of mining professionals experienced in geological evaluation, exploration, financing and development of mining projects. To mitigate development risk, the Group supplements this from time to time with engagement of external expert consultants and contractors.


    Environmental Risk

    Exploration and development of a project can be adversely affected by environmental legislation and the unforeseen results of environmental studies carried out during evaluation of a project. Once a project is in production unforeseen events can give rise to environmental liabilities.

    As Keras undertakes mining operations, any disturbance to the environment during this phase is required to be rehabilitated in accordance with the prevailing regulations of the countries in which we operate as well as to international best-practice.

    Given the Group's size and scale it is not considered practical or cost effective to collect and report data on carbon emissions.


    Financing & Liquidity Risk

    The Group has had an ongoing requirement to fund its activities through the equity markets and may in future need obtain finance for further project development. There is no certainty such funds will be available when needed. To date, Keras has managed to raise funds primarily through equity placements despite the very difficult markets that currently exist for raising funding in the junior mining industry.


    Political Risk

    All countries carry political risk that can lead to interruption of activity. Politically stable countries can have enhanced environmental and social permitting risks, risks of strikes and changes to taxation whereas less developed countries can have, in addition, risks associated with changes to the legal framework, civil unrest and government expropriation of assets.


    Partner Risk

    Whilst there has been no past evidence of this, the Group can be adversely affected if joint venture or equity partners are unable or unwilling to perform their obligations or fund their share of future developments. Keras no longer operates with either equity or joint venture partners having secured 100% of the Diamond Creek project.


    Bribery Risk

    The Group has adopted an anti-corruption and bribery policy and whistle blowing policy under the Bribery Act 2010. Notwithstanding this, the Group may be held liable for offences under that Act committed by its employees or subcontractors, whether or not the Group or the Directors had knowledge of the commission of such offences.


    Financial Instruments

    Details of risks associated with the Group's financial instruments are given in Note 26 to the financial statements. Keras does not utilise any complex or derivative financial instruments.


    COVID-19

    Travel and shipping restrictions in place globally during 2021 had a direct impact on timing and cost of delivery of plant and equipment to the USA. However, given recent developments the Directors do not believe that Covid 19 will have a material effect on the Company or its operations going forward.


    Insurance Coverage

    The Group maintains a suite of insurance coverage that is appropriate for the Group and Company. This is arranged via a specialist mining insurance broker and coverage includes public and products liability, travel, property and medical coverage and assistance while Group employees and consultants are travelling on Group business. This is reviewed at least annually and adapted as the Group's scale and nature of activities changes. Keras also has Directors and Officers insurance in place.


    Internal Controls and Risk Management

    The Directors are responsible for the Group's system of internal financial control. Although no system of internal financial control can provide absolute assurance against material misstatement or loss, the Group's system is designed to provide reasonable assurance that problems are identified on a timely basis and dealt with appropriately.

    In carrying out their responsibilities, the Directors have put in place a framework of controls to ensure as far as possible that ongoing financial performance is monitored in a timely manner, that corrective action is taken and that risk is identified as early as practically possible. The Directors review the effectiveness of internal financial control at least annually.


    The Board, subject to delegated authority, reviews capital investment, property sales and purchases, additional borrowing facilities, guarantees and insurance arrangements.

    The Board takes account of the significance of social, environmental and ethical matters affecting the business of the Group. At this stage in the Group's development the Board has not adopted a specific policy on Corporate Social Responsibility as it has a limited pool of stakeholders other than its shareholders. Rather, the Board seeks to protect the interests of Keras' stakeholders through individual policies and through ethical and transparent actions.

    The Group has adopted an anti-corruption and bribery policy and a whistle blowing policy as stated previously.


    Shareholders

    The Directors are always prepared, where practicable and subject to confidentiality under the AIM Rules, to enter into dialogue with shareholders to promote a mutual understanding of objectives. The Annual General Meeting provides the Board with an opportunity to informally meet and communicate directly with investors.


    Employees

    The Group operates primarily through contractors. Notwithstanding this, the Group engages its employees to understand all aspects of the Group's business and seeks to remunerate its employees fairly, being flexible where practicable. The Group gives full and fair consideration to applications for employment received regardless of age, gender, colour, ethnicity, disability, nationality, religious beliefs, transgender status or sexual orientation. The Group takes account of employees' interests when making decisions and welcomes suggestions from employees aimed at improving the Group's performance.

    The Group currently operates in the USA and Togo. It recruits locally as many of its employees and contractors as practicable.


    The Company has four directors, all are male.


    Suppliers and Contractors

    The Group recognises that the goodwill of its contractors, consultants and suppliers is important to its business success and seeks to build and maintain this goodwill through fair dealings. The Group has a prompt payment policy and seeks to settle all agreed liabilities within the terms agreed with suppliers. Contractors are appointed based on a detailed assessment of their capabilities, capacity and track record.


    Health and Safety

    The Board recognises that it has a responsibility to provide strategic leadership and direction in the development of the Group's health and safety strategy in order to protect all of its stakeholders. The Group does not have a formal health and safety policy at this time. This is re-evaluated as and when the Group's nature and scale of activities expand.


    Section 172 statement

    The Directors believe they have acted in the way most likely to promote the success of the Company for the benefit of its members as a whole, as required by s172 of the Companies Act 2006.

    The requirements of s172 are for the Directors to:

    · Consider the likely consequences of any decision in the long-term;

    · Act fairly between the members of the Company;

    · Maintain a reputation for high standards of business conduct;

    · Consider the interests of the Company's employees;

    · Foster the Company's relationships with suppliers, customers and others; and

    · Consider the impact of the Company's operations on the community and the environment.


    The Company's operations and strategic aims are set out throughout the Strategic Report and in the Chairman's Statement, and relationships with stakeholders are also dealt with in the Corporate Governance Statement.



    Graham Stacey

    Director

    This Strategic Report was approved by the Board of Directors on 29 June 2022

    Keras Resources PLC - Final Results #KRS @kerasplc https://www.voxmarkets.co.uk/rns/announcement/4e41cac6-4900-4771-a9e0-52f6fc796c27
     
    Last edited: Jun 30, 2022
  11. Groucho

    Groucho Member

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  12. Groucho

    Groucho Member

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    4 August 2022

    Keras Resources plc ('Keras' or 'the Company')


    Operations Update - Diamond Creek Phosphate Project, USA


    Keras Resources plc (AIM: KRS) is pleased to provide an update on operations from its high-grade Diamond Creek organic rock phosphate mine in Utah, USA ("Diamond Creek'). The 2022 mining campaign is now underway and will run through to early October 2022 as per the permitted summer mining season.

    Processing of stockpiled material is ongoing with crushed run-of-mine ore being milled to produce 10 mesh and 50 mesh products which are bagged and sold directly from site to two long-term customers. We continue to feed our milling plant at Spanish Fork to produce our finer 100 mesh and 350 mesh products to fulfil ad-hoc orders. Cumulative sales to date totals 5,650t from our previously reported total of 4,657t at end-May.

    Management is consistently reviewing and evaluating the Company's operational and processing cycles to continue to streamline operations and further increase the product mix flexibility to suit a naturally cyclical organic agriculture segment.


    Graham Stacey, CEO of Keras commented, "Our mining season on the mountain has started well this summer, having refurbished our access roads and completed all preparations post the winter snow melt. We continue to meet current sales and work towards ensuring ample product availability for the 2022-2023 spring sales season, our milling plants are performing well as we continue to process our rock into a range of products tailored to customer requirements. It is very pleasing to see the business settling down into a more predictable rhythm of sales of upwards of 500t per month with firm orders for the remainder of the current quarter. We look forward to reporting on our ongoing progress over the coming months."
     

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