You can look at stocks like NKP. Delay after delay. News is always "next week". Eventually it really is next week. NKP finally got one of the big announcements they were looking for.
It reminds me a lot of Andash. Blind Freddy can see that KGL got excited pre-christmas about the prospects of the Kurulti. Their confidence hasn't changed, it's only the timing that has.
The Kurulti is definately the big announcement. Things like environmental permit, construction permit and the extension of June deadline are more trivial.
But we know we had a politician bad mouthing our envirnmental planning and spreading untruths. We know how much red tape we have gone through up until now, so you can assume the construction permit and formal extension will also drag out.
What we dont know is at what point sentiment will change enough to actually begin site works. We know we can start now. But we know we havent started and no mention of starting. So we wait for improved sentiment.
It's amazing how slow countries can be. But that is why we have a massive discount to NPV.
I don't know at what point KGL might consider starting some basic siteworks without hearing any feedback. But it might encourage government to get on with things or it might push locals against us.
My personal opinion is dont spend too much without (at a minimum) local support. Once you start spending, the pendulum shifts back to them. They know they can demand more or we lose what we have spent.
Right now its a poker game. Delays for various reasons. We will take it easy and remain with the upper hand. Saying and doing the right things.
Strong finish today. Let's hope it carries over to tomorrow.
KGL Price at posting:
$1.10 Sentiment: Hold Disclosure: Held
