KDR 0.00% $1.90 kidman resources limited

Well I have spoken to the company Eshmun and was put through to...

  1. 160 Posts.
    Well I have spoken to the company Eshmun and was put through to the MD who didn't hide the fact the March qtr production will be down as they cut back production and that they had flagged this to the market ( which they had as you point out). More important is to ask why?
    The reason given was that as soon as they bought out the 20% owner in January at the start of the quarter ,who was ALSO the mining contractor that they replaced with PYBAR, they made the decision to step back and set the mine up properly. From this point on 100% of the benefits go KDR shareholders ...not 80%. The 20% partner was a small time private operator "who cut a lot of corners" and never had the cash or willingness to invest in drilling and suitable development, vent upgrades etc to set the mine up so it can produce the ounces it should. With him gone the company made the decision to proceed accordingly and drilled out areas that are now showing results. These areas will be mined in upcoming quarters.
    Clearly the June and Sept qtrs will be where the benefits come and those participating now will get the full benefit from the share price. No matter which way you cut it KDR is cheap at this level ( why else would institutions invest in the placement like Acorn?) and they are setting things up now. I wont be surprised if this is the St Barbara of 2016 !
    Oh and I didn't even mention the fact they also have Mt Holland now with 1 million ounces that can be brought into production soon and for relatively minimal cost.
 
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Currently unlisted public company.

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