Ann: $20.4m Capital Raising to Underpin Next Phase of Growth, page-14

The analysis was from Barry Fitzgerald (Livewire).

I don't think the plan is to get to 2 million ounces in a couple of years. I think the plan is an order of magnitude increase by locating the deep source of the Cardinia deposits. No certainty, but I think there is good case that applying current exploration science systematically over 3 years has put them in a position to define credible deep targets for the next round of drilling.

I have more sympathy than you for management regarding the share price. Kin is mostly held by big holders who don't trade. The the price moves on small volumes based on who knows what psychology. In the end the primary responsibility of the company is to holders, not traders, and from that point of view the focus has been on building value, which I think has been done. Kin is smallish and surrounded by larger players who they can't control. I suspect that the Fitzgerald analysis is correct that if mill owners think Kin is struggling for cash they will hold back on a milling deal to see if they can pick up Kin's ore in a fire sale. The important thing was for Kin to get funding, and going to a placement tells us they have a story to tell large investors. I think St. Barbara likewise won't fund Kin's drilling ... why would they, when some good diamond hits could send the SP through the roof and out of reach for a takeover, while if Kin can't fund drilling they could bid peanuts for Kin. Getting Delphi on board has protected Kin from the sharks imho.

As for dilution. Exploration costs, and production would cost a lot more. As a joint owner of Kin either you keep stumping up until production or accept dilution. That is what it means to part own a gold explorer or developer. Either 7.5 cents is a bad deal or it isn't. If it is a good deal it is offered to all of us. If it isn't then fine ... others will fund the drilling, thank goodness. It is possible the resource upgrade will come out before holders have to make a decision on the rights issue of course. I am thinking it will be over 1.6 Moz, not 1.5 Moz, given we have seen 1.6Moz + in recent presentations. Either way, I think they will be expecting at least 50% takeup of the rights issue, which means a total of about 14 or 15 million which is enough for about a year. I am focussed on the exploration, and in my mind getting funding is a priority. I thought "well done" when I read the placement was fully subscribed.