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2.9¢ kingwest resources limited

Ann: Positive Scoping Study for Menzies Gold Project, page-12

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mraki082

350 Posts.

424

24/03/21

10:46

Post #: 51997014
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Originally posted by hanabi: ↑

its not as good as i hoped

Agreed, and now we all know why we're at 12.5 cents. No mention of AISC in this report but we can expect it to be higher than the quoted operating production cost of $1,688/oz, and generally speaking costs in these studies are under-estimated and usually blow out to some extent, so I'd expect costs to be most likely higher than $1,688/oz. The 64m EDITDA all rests with the AISC and the POG so there's no guarantees we'll get the minimum of $64m. Very short mine life of 31 months, but I'm hoping they can extend that with further drilling.

I'll probably be scolded for being too negative but I've learnt from experience it's better to err on the side of caution when it comes to gold stocks and resource companies in general.

On the positive side the average grade is not bad, and $64m will help pay for a lot more drilling to prove up the remaining ground we have. And if the POG starts to increase, that will flow directly to the bottom line and this could become a nice money earner.

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The market has spoken and we cannot argue with the market at the end of the day.

If the SP keeps getting smashed the MC will be at cash backing soon.

Disaster at the moment. Let's hope we hit something huge at depth!

KWR Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
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