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$1.90 kidman resources limited

Hi Mainholm, That was an excellent post . Thumbs UP. Excuse my...

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rickii78

1,223 Posts.

159

10/05/16

12:54

Post #: 17723519
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Originally posted by mainholm ↑

Yep, received mine today. Good luck with your next investment.

Sometimes one needs to remove the emotions from investing decisions. There has been a lot of negative posting on HC about this company. Listening to that negativity will likely make one miss the big picture with KDR.

The way I see it with the direction of KDR, it is all about what one can call 'resetting'. The MD has been searching for a company maker since getting involved with KDR. I doubt Burbanks is a company maker. Mt Holland will be the company maker.

Burbanks is a challenging mine to operate because it is narrow vein. Notwithstanding that challenge, the opportunity is presented because it is high grade veins. That means the mine plan and mine operations need to be switched on or otherwise it will be like chasing your tail. I'm guessing Blue Tiger were not up to the challenge. That is why Pybar was engaged. To do that KDR needed to get rid of BT, hence the buy out of the remaining 20%. It gives KDR freedom of action without having BT dragging the chain and interfering.

Pybar are going to operate the mine using air legging. An old time method, but the most appropriate for this type of geology. The key will be having a switched on mine geologist and a consultative approach to mine planning involving Pybar. Burbanks alone will not be good enough to be a company maker. The operating costs will be above average and the margins will fluctuate period on period relative to the geology being opened up.

Hence the need to find a good project like Mt Holland. Proving up the economic feasibility of the deposits in the Mt Holland tenements is going to cost money. Developing the resources is going to cost more. Burbanks will play a role in providing a basis of cash flow for the feasibility work, but more funds will be needed when a decision to mine is made. Mt Holland will be the company maker.

It seems that KDR has made a few enemies during their search for a company maker. The KBL saga being one incident. Jumping in bed with Capri being another. Then there seems to be some sour grapes with getting rid of Blue Tiger. On top of that there are the opportunists trying their hand at a long shot claim for tenements at Mt Holland.

This is all background noise that can cloud the outlook for future prospects of KDR at this moment in time. I hear it, but don't listen to it because it is either history or irrelevant. KDR is in the process of 'resetting'. Bringing Peter Lester on to the Board as Chairman is part of that resetting. Improving the mine plan and mine operations at Burbanks is the next part. Monetising non core assets is another step. The big step is acquiring Mt Holland and then proving up resources.

No doubt that KDR is still high risk, but looking forward the rewards are also high. Probability analysis indicates to my eyes that this stock is worth the punt. Leave emotions at the door and adopt a realistic opinion about Burbanks might the wise path to take. I expect there will be plenty of good news catalysts coming out of Mt Holland over the next 6 months or so.

Cheers

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Hi Mainholm,

That was an excellent post . Thumbs UP.

Excuse my naivety or ignorance, but how is KDR on site if Mt Holland has not yet been " acquired" ? is there pending litigation?

"Interesting" has left the building ... where has that person gone?

KDR Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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