The Beer & Co report makes plain it is founded on conservative assumptions:
Beer & Co is of the view that KIN has significantly greater mineralisation than used as the mining inventory for the scoping study.
Beer & Co believes that our valuation is likely to prove conservative in terms of
Gold prices, as we use $1250/oz, and AUD‐USD of 0750; and
Volume and grade of mineralisation extra to the scoping study’s 3Mt at 1.7g/t.
Still, their risked base-case valuation for KIN comes in at 29c/share.
The analyst, Pieter Bruinstroop's, numbers are largely based on the May scoping study and, while his conservative approach is unlikely to change, we will have the PFS out shortly, which will invite a follow-up report.
It'll be interesting to follow Beer & Co's 'before' and 'after' analysis as figures for the LGP progressively firm and come into focus.
KIN Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
