EV at sub $8m. 20c seems to be a strong support level. The...

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Bastiroar

974 Posts.

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02/05/23

09:55

Post #: 67558103
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Originally posted by Blythefan: ↑

The market is made up of a lot of ignoramuses feeding off one another's baloney in the shallow end of an information pool.

What I see is;
multiple carbonatites you can see on aerial photos (including ones not drilled by KFM or mapped by KFM)
A distinct ASTER signature that correlates well with carbonatites (and REE's), allowing exploration to continue outside of the currently defined targets
Dykes you can see on air photos (including ones not drilled by KFM)
Results which are consistent with DRE's and HAS's to the north (albeit, a lot of fenite between the lodes, but so what?)
Management that has good geology skills (unlike say, M24)
Punters who correlate 20% TREO rock chips with 1.5% to 2.5% drill intercepts over 5m, and think it's a disaster (it ain't)

I think this will take a lot of work by KFM to find wither a significant Mt Weld type internal zone within a larger carbonatite complex, or find a further set of ironstone/fenite veins.

Remember it's 6-8 weeks between submission and lab results. Add 2-3 weeks for collection of a batch and a week to freight them from Carnarvon to Perth, and the results cycle is basically a whole quarter - for rock chips.

KFM needs rock chips, maps, geophysics, to define targets, before deciding on a place to invest $80-100K on a heritage survey ahead of a POW. If they do 3 months mapping and sampling this quarter, full results end of next quarter, define a target, and the heritage will be done by October/November. RIght in time for mobilising a drill rig for Christmas.

This takes time.

I'd rather be here than with a company that can't QAQC their REE assays properly.

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EV at sub $8m. 20c seems to be a strong support level. The downside looks manageable. The question is then on opportunity cost compared to relatively valued peers such as VSR and HRE to name a couple. You say you would much rather be holding KFM. I'm holding all 3 but have been rebalancing splits in favour of VSR recently which is demonstrating more positive sentiment and momentum. I still remain long on KFM but it seems to have lost traction.
KFM Price at posting: 22.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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