Ann: KGL Jervois Project Feasibility Study Update 2025, page-9

The latest feasibility update is a tremendous result and management should be congratulated for producing a document that will
certainly attract significant interest.
Unlike the 2022 study this is based on conservative mining proven and probable reserves and a ten year life.Given that significant inferred reserves have not been included in the model and the deposits are open at depth and along strike, it is a very good bet the life of the project will be in excess of 20 years.
The study confirms the numbers I have outlined in earlier posts.
The 10 year EBIDTA is $1.8 billion averaging $180 million a year.
Cash flow averages over $200 million a year and the NPV after tax value of the project using an 8 per cent discount is $406 million or 62 cents a share.
At the current share price of 9 cents KGL is valued in the market at $58 million.
This is joke given that it is fully permitted with construction planned to commence in four months.
There is no doubt in my mind that this project will be easily financed .The peak cash requirements are $500 million which inculdes
significant working capital and works that should qualify for Government funding.
There are substantial contingencies in the numbers and they include about $35 million of money KGL has already spent.
The board has resolved to appoint a financial adviser and the project is of sufficient size to attract a tier one group.
I would expect this to happen in the next 4 to 6 weeks.
One option would be to introduce a joint venture partner to provide the equity capital required ad finance the balance of the project with debt.
The obvious partner is the Salim Group that already owns 35 per cent of KGL.
KGL could offer them a 50 per cent direct interest in the project in return for cancelling their shareholding in KGL and putting in the first $115 million of equity.As a 50 per cent partner, Salim benefits as to 50 per cent of funds spent so earning the interest by spending avoids a sale of equity which attracts tax.
KMP Investments,The Salim holding company owns 227 million share in KGL so if this deal was done the issued capital of KGL would drop to 421 million shares.
There should be no further dilution to KGL and its cash flow would be around 25 cents a share.The stock would rocket to over $1.
There are many possibilities and it should all happen over next 4 months.