I’ve seen quite a few of your trades / posts and have a lot of respect for you @Fredwah and your TA (and the patience you’ve shown other posters with teaching / training) but, politely, I think you’re incorrect here.
If you disagree with what I posted before, I kindly suggest that you give KWR a call. I didn't / don't pull my 'understanding' from thin air.
To me KWR’s announcement in October and the follow up in December was reasonable. Nothing substantive has changed to warrant a further announcement - the deal simply hasn’t progressed.
I don’t know the exact terms or positions of the parties; it would be inappropriate of KWR to disclose that to me.
The JV was always subject to DD; perhaps FMR wanted to drill first and then consider the terms of entering the JV - that at least appears to be what happened. KWR would allow FMR to do their DD (including drilling) because it costs KWR nothing, and might result in the JV going ahead. Why would FMR do the drilling without entering the JV? Because as soon as they enter they cough up min $500k. Neither KWR or FMR's actions are commercially unsound.
Re delayed drilling results 6 months (while I have been told that is not the case, again, call KWR) look at NXM for an example of a company that didn’t get results for that sort of time.
Agree with your second last statement that KWR is undervalued.
Finally, I’m not making excuses for the company though. Big fan of Ed and the way he’s moving the company forward. E.g proving up cheap ounces at Menzies and not wasting money with the drilling at LG, and (as above) I think that they're updating the market as and when necessary.
If you want to discuss further/offline you're more than welcome to ping me at [email protected].
All the best.
KWR Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
