Ann: Chairman's Address to Shareholders, page-2

I'm struggling to be enthused by another 'jam tomorrow' announcement from the chairman.

By my calculation there has been an addition of just over 250,000 ounces to the MRE since December 2020. But Kin has also raised $33.5m in additional capital in 2021 and 2022. Even if you strip out cash that hasn't yet been spent, or which has gone to buying the DCN shares, the effective finding cost for the additional ounces is very high, probably $100 an ounce? It also seems to be increasing on previous phases of building up the inventory, despite the commentary on how the geological understanding is improving etc.

Hopefully we are about to enjoy a step change in exploration returns. But drilling deeper is also going to cost more, so they have to hit the higher grades they are alluding to this time.

The chairman talks about it being "early days" in the process. If only that could be said for some of us here!