Under valued? Ghost?, page-2

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punter45

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16/07/24

15:13

Post #: 74776886
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Originally posted by Morepork11: ↑

Mid March 2023 a Resolve Research analyst issued a strong buy and a price target of 4.6c
Since then the gold price has risen from $ US 1850 to hover around $ US 2350/oz, an increase of 27%
Additionally the resource has increased from 1.1m oz to 1.6m oz an increase of 45%
That price target looks more like 8.5c now if you simply compound the two facts above. This doesn't consider increased operational or development costs or adding any value for the recent REE discovery.
Despite all the positive developments the share price has halved from 1.8c to 0.9c over the same period.

Why?

Perhaps the board are highly skilled geologists and right into their rocks, however, either they appear to lack the desire or understanding of how important it is for this value to be recognised in a competitive sharemarket with so many companies fighting for attention. This lack of visibility in the sharemarket is likely the underlying problem behind undervaluation.
There is a notable lack of investor presentations (over the last 18 months or so) or other publicity that could provide some investor interest and so the company has turned into a bit of a ghost on the ASX.
With the apparent undervaluation comes compounding problems, being a struggle to raise capital, attract investment partners with the wheels to either pay a reasonable price (in the best interest of shareholders) or for the out right sale of the Mt York resource, or strike a deal with partner developer with deep enough pockets to develop a profitable mine without encumbering the business with unmanageable debt. (Example Calidus too much bank influence)
Here's hoping the newly appointed Robert Klug has the ability and desire to raise market awareness and extract some value for the long suffering investors and find a fair and reasonable deal for the shareholders.
I suspect the valuation is way higher than the 8.5c speculation proffered above.
Even if there is only $AU 1000/oz left over after all extraction or processing costs then there is a gross value over the life of the mine (1.6 M oz at a processing rate of 4Mt/pa looks like around 10 years) of 1.6B Ozzy.

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when you do a research on the directors and their past and current involvement with other companies, you sort of get your answer why kai is suffering under current management.

0.008c showing up on trading platforms

next cr at current rate of sp massacre is going to be ugly

KAI Price at posting: 0.9¢ Sentiment: None Disclosure: Not Held
4 Upvote

0 Great analysis

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(20min delay)
Last 2.6¢		Change -0.001(3.70%)		Mkt cap ! $68.40M

Open	High	Low	Value	Volume
2.7¢	2.7¢	2.5¢	$103.4K	4.019M

Buyers (Bids)

No.	Vol.	Price($)
1	650	2.6¢

Sellers (Offers)

Price($)	Vol.	No.
2.7¢	3428575	9

View Market Depth

No.	Vol.	Price($)
1	650	0.026
1	100000	0.025
3	583333	0.024
4	2378507	0.023
6	778000	0.022

Price($)	Vol.	No.
0.027	3428575	9
0.028	2438461	4
0.029	1906483	4
0.030	2757046	8
0.031	326500	2

Last trade - 16.17pm 07/08/2025 (20 minute delay)

KAI (ASX) Chart

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