We have had a few posts lately where holders have forgotten that it is the basics of an operation that actually count in making money, and if you get sidetracked wildly overthinking things like about the origin of directors holdings, then sadly you will miss the forest for the trees!
Something thats certainly not lost on Barry Fitzgerald in his recent *Stoc Head* post
"Kairos could certainly do with a re-rating event. At its mid-week price of 2.8c a share it is has a market cap of $73.6 million. Based on the existing 1.4Moz resource estimate, it has one of the lowest enterprise value-to-resource ounce metrics in its ASX peer group.
That is despite a scoping study in November last year outlining a $276 million project producing 115,000oz annually at an all-in sustaining cost of $2205/oz. Using a conservative $3500/oz gold price, the pre-tax net present value (NPV) was put at $410 million and capital payback was put at 2.7 years.Gold is now $5100/oz or thereabouts.
Plug that into the financial model and Garimpeiro estimates a NPV of around $1 billion and a payback period well short of two years. That makes Kairos’ current market look to be on the mean side of things.That’s particularly so when Mt York gets juiced up by the additional ounces expected to come from the big exploration push now underway"
KAI Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
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