it starts to look/feel KCC will not be rushing to sign another JV unless they find the right partner and the deal probably delivers a cash injection without issuing KCC shares.
the reasons why I think this will be the case are:
1. Trundle, Fairholme, and Condobolin have seen few holes with parts of Trundle being drilled lot more. At Trundle KCC has few areas that have returned economic grades - Dunn's North and Dunn's South. These two are shallow intercepts and if future drilling can prove there is more of that material they can become massive Open Pits suitable for bulk mining. The area between both Dunn's has not been tested and from what I can see there is every possibility these two are connected.
2. Same for Condobolin and Fairholme - KCC has proven the potential for both. With Fairholme (and Jemalong) being so close to Cowal makes them even more attractive.
3. KCC has applied for few more tenements near Nyngan and are about to be granted those tenements. 4. Wongarbon has not been drilled and this is pure greenfield project in very attractive setting.
The above means KCC can offer very attractive JV opportunity as a mix of brown and green field opportunities with reasonable discovery potential. Therefore, I think KCC will not rush into cheap JVs with rest of the tenements as the mix of these tenements is not all green field opportunities but also contains projects that have shown genuine potential.
In the meantime we can wait to see what KCC and AGA will produce from Nyngan and WML will produce from Mongolia. Also to remember Earth AI have drilled couple of holes south of Boda on one of KCC grounds which may deliver some news. Few more weeks and the drill bit will start talking.
And if one of these drilling campaigns produces the goods then KCC will be re-rated and will be able to do CR at better terms which will allow them to drill some of their projects - in absence of more JVs.
good luck all.
KCC Price at posting:
5.0¢ Sentiment: Hold Disclosure: Held
