I should add that on my understanding, the coarse, 'crunchy' Helens ore is particularly well-suited to the plant and planned process curcuit we have.
Kyte, which was the deposit earlier mooted to lead the batting order for its grade, less so. Indeed, unworkably less so, I believe ...and better to be blended later.
In fact, from what I can make out, it has been the relatively soft, fine nature of the Kyte material that has been at the nub of our recent problems ...or at least the proximal cause.
But the good news I'm gleaning is of a consensus, including from the fresh eyes that have been cast over the project, that the LGP is resoundingly(!) worth pursuing - and of the already-acquired plant, that it is definitely fit for purpose!
I guess we're awaiting the full Como report ...but I don't know why that much at least isn't being forcefully spelled out now. "No fatal flaws" is a tad lame. It's a major determinant for folks trying to decide what to do with their Entitlements that we haven't evidently done our dough on the plant and the site works to date, and the project still has the potential to be a real ripper.
Anyway, I believe it's only up from here as the LGP MkII takes shape.
Mk I ("KIN Lite") saw us in a magnificent dash for the line ...that, yes, ended in a stumble. One can never know the counterfactual, the "what if", of course, but I'm not altogether convinced its problems couldn't have been fixed on the fly with far less collatoral damage.
It would've been a massive coup to have got the LGP, which has the potential to be a multi-million oz project over time, up and running - generating cashflow and growing organically from there - with only about 300m shares on issue. Though to do it, we did have a very high debt to equity capital structure, and not much slip room. Which made us vulnerable in the early years.
Never blink.
As it is, we are where we are now, and the important thing is the way forward.
From speaking with management, I think we'll see an extremely professional unfolding from here. Plodding perhaps, and with a more traditional capital structure ...but very professional.
Shareholders wondering if there's still value in KIN should look to the current gold price ~AU$1,700/oz, and remind themselves that the LGP was acquired for an unassailable $2.60 per then-known ounce (considerably more gold has been discovered since), and currently has an NPV, based on an 8% discount rate, north of $130m.
For what it's worth, I will be taking up my full Entitlement(s).
(All the usual caveats apply.)
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