The assessment seems conservative, as you would expect I guess, but I think it is significant that KIN is now figuring on an independent buy list of a specialist broker. That can only be good for future fundraising for drilling and perhaps to help shore up demand en route to removing the curse of Mansell's Law. I notice the SP has dropped a bit on the news, so that, according the Mansell's Law, supports the view that this announcement is good news.
I noticed that the Petra MD has experience with Sons of Gwalia, which turned my thoughts to KIN's south Gwalia tenements. When you look at how deep St. Barbara are sending trucks in the declines below the Sons of Gwalia pit you have to wonder why they would not be interested in exploring southwards. Why has KIN got that ground and not St Barbara?
Answer, it seems, as no doubt some here knew already, is that in 2009/10 when St Barbara had leases covering 17000 square kilometres, including the area to the south of Sons of Gwalia, someone dropped the ball. The leases expired, and someone else got in there and pegged the ground. KIN. What we know about that ground, apart from the nearology, is that it is covered in deep sediment so geos can't evaluate it on the surface. KIN's drilling to date has established that it is geologically continuous with the Son's of Gwalia ground. That's how I understand it anyway. I know we have plenty on our exploration plate, but you would have to think a discovery there and a granted mining lease would have St. Barbara knocking on the door asking about a deal.
Which brings me to Rick Rule and the 7 footers which he referred to in his video. Perhaps he was looking for an excuse to mention Warren Buffet and gain some halo effect, but the point he made was about picking junior miners. He said that, with hindsight, rather than evaluate each company on its merits he could have done just as well by picking stocks associated with the relatively small number of individuals who had solid track records.
For those of us who have tracked back the KIN story and the individuals who have been instrumental in picking the ground, hanging on to it, and moving to deftly to production, you can see why Sprott's would have liked the company, if it was evaluating the key players as much as the project.
The other Rick Rule point I thought was interesting was his view that not much true exploration was going on. There were companies spinning a narrative without drilling a single hole, and companies announcing assays from drilling twinning holes in known locations. Our 100km of drilling is proper exploration, any upside of which has not really been included in the Petra target price.
As for the target price of .45 - I guess some might sell @ .45 but it won't be me.
KIN Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
