"only announcement is that assets will be monetised fairly...

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coalboy

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02/12/23

15:30

Post #: 71235491
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Originally posted by RooBendigo: ↑

I think general market valuations of ore are less important than what Cardinia ore is worth to GMD to get the Mt. Morgan's mill running sooner rather than later. I assume that if there is a price it will be a commercial one which shares upside between GMD and Kin / Delphi. Unless there is other free milling ore permitted and ready to mine which GMD could buy instead there is not really a market where GMD could just buy more ore.

My guess is Delphi will not want to give away the potential higher grade deeper ore below Cardinia, which might be hard to find now but which will become easier to find as the pits get deeper. It will also want to hang on to the potential for King of the Hill lookalike at Iron King, and other tenements.

SBM paid 16 cents for Kin. Delphi have had dozens of bites can't be bothered trying to work out their break even. GMD don't have that much cash and need to start producing. I think GMD will want to take over the Cardinia project for shares. I think Delphi will want a royalty in case Cardinia goes underground eventually. That would leave Kin shareholders with some GMD shares and Kin shares, with a fair bit of drilling money to and a royalty to work on the other tenements.

All of this presumes there is a commercial arrangement, rather than GMD using the muscle of having the only feasible milling solution for Cardinia, which is to say it assumes GMD needs the Cardinia ore for the Mt. Morgans mill and has to come to a fair arrangement.I can't see Delphi letting the DCN shares go if it was going to leave Kin at the mercy of GMD to process its ore. Accept GMD shares so GMD could then just takeover Kin? Makes no sense to me..

The fact Kin have got rid of their mining team and engaged external independent consultants to value their projects suggests to me there is some detailed commercial discussions going on behind the scenes ... not to mention Kin have a ton of money available through GMD shares but haven't appointed a new MD and haven't announced any drilling program ... only announcement is that assets will be monetised fairly soon.

Banking on Delphi being (a) competent and (b) underestimated in WA has served me well with DCN an GCY/SPR shares this year ... I am reasonably confident Delphi have positioned Kin well ... not so confident to say "buy", but certainly "hold". I am going for the award for the last Kin optimist standing on this forum though ... so not advice.

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"only announcement is that assets will be monetised fairly soon"
must have missed that one .

KIN Price at posting: 6.0¢ Sentiment: Hold Disclosure: Held
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