Since the decision to pull out of building the plant at Leonora the company has raised about $90m in capital (including today’s announcement).
It has increased the MRE by about 600k ounces, maybe a bit more, during that period.
So the cost of discovering these ounces exceeds their value in the ground, as an explorer, by a large margin.
KIN now needs to triple its market cap to get back to even the SBM offer of 16 cents, which Delphi deemed too low.
Business as usual won’t see the share price rise anywhere near that, even if Delphi is crazy enough to keep bankrolling the exploration. Hence all the talk of large, high-grade discoveries in the deep being imminent.
KIN Price at posting:
5.3¢ Sentiment: Sell Disclosure: Held
