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KIN

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5.7¢ kin mining nl

development & production, page-20

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285 Posts.

29

12/04/18

12:56

Post #: 32407273
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Originally posted by loki01 ↑

I once owned NAV back in 2006 and/or 2007 and rode them up from around 26 cents to over $1 and back to my entry point when I exited. I followed them a bit afterwards and always wondered why they did not develop their Leonora tenements into a mine, but later on had a go at VRE's failed mine (I escaped VRE with a small profit just prior to their last trading halt because I did not believe Fat Prophets recommendation).

For some reason I have not been able to get exited about NAV's old stomping ground so I have not followed KIN all that closely. My main interest in KIN has been in its nearology to Gwalia (they released a press release some years ago about a nearby tenement but there has not been any follow on, as far as I know).

Today's announcement caught my eye so I have read some recent announcements and the posts here. I am definitely no expert here, and I thought that big Harry as Chairman of this company possibly had something going for it that I was too stupid to recognise. Like I said I have not followed KIN too closely and was surprised recently to find Terry Grammer on the Board (he irritates me given his association with MTR's attempted backdoor takeover of KCN - yeah I know KCN management is on the nose, but still...MTR!), but now learn he is not longer a Director and wants back in.

Anyway I just wanted to say that given the drawdown of the $36m loan from Sprott the clock is ticking for KIN to build its mine on budget, on time, and the ability to meet the payment schedule of the loan. I hope Sprott is gentle on KIN if there are missteps (I know MacBank would not be). I would hate to see this company go the way of BLK which has undertaken a massive dilution to fund the repayment of their loan as their operations had failed to meet a host of targets. I was a shareholder of BLK on and off over the last 2-3 years and while I made some useful money there when the market was generally bullish, I also gave back some by being a bit too forgiving about their problems (I exited in the mid 30 cents).

I would be very careful of this investment if there are any delays or failures to meet targets. The projected 60k ounce pa production will have to fund a lot of costs plus the loan repayment. I suppose the strip ratio here is a lot lower than BLK's reserves so that mining costs should be lower (but I have not checked it) plus hopefully there will not be a problem with accessing ore at the right grade to make the operation net cashflow positive. One thing that used to worry me a bit about NAV was that they would mine a series of small pits and this would somehow result in a higher mining cost, but perhaps I am wrong on that point since I am no mining expert.

GLA. I will continue watching KIN from the sidelines.

loki (its hard to make a crust from our goldies at present, especially the developers)

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This guy has wisdom!!!

KIN Price at posting: 15.0¢ Sentiment: Buy Disclosure: Held
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development & production, page-20

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