GMD have completed the purchase of SBM's leonora assets. The leonora mill has spare capacity. GMD say Admiral (South of Leonora) will have ore from December quarter. Later ore from Ulysses also going to the Leonara mill. So Kin ore will not be needed by that mill and GMD do not have ore for Mt Morgans.
GMD still speak of DCN in terms of 100% ownership ... they assume that in their announcements. DCN are are working to restart the Mt. Morgans mill, which is about 50km from Cardinia, with ore from their Jupiter project which they say is now economic. But the plan is to use Jupiter ore and "other" ore for the restart. We now know that won't be Genesis ore, which is further away than Kin ore anyway. The Mt Morgan's mill is newer and bigger than the Leonora mill (2.6 Mtpa I think).
How it plays out will really be up to Delphi I imagine, but Kin have the ore ready to go which Mt Morgans needs, and they have half the DCN shares GMD doesn't already own (with Delphi). GMD still have a about 130 million in cash.
I don't think RED is in the picture, depending on an announcement any day from RED about the June quarter results (April and May were good). They have a big low cost mill but expansion plans which could leave room for Kin ore are a way off. RED to me look set to stand alone for the medium term.
Helps to see where the mills, roads and resources are on a map (the map is from GMD Leonora gold project is their term).
To me the next move is for discussions between Kin, DCN, and GMD. In my mind the DCN purchase might pay off ... it has left Kin a bit starved for exploration funds in the short term, but in a stronger negotiating position. Kin's appointment of a development manager points to those kind of discussions, if I am not over-interpreting.
I know some here are hoping for TO, but I would rather see Kin producing first so any merger / acquisition is based on a better valuation.
KIN Price at posting:
3.1¢ Sentiment: Hold Disclosure: Held
