Beer and Co Research Note

New report up on Kin's Investor section on their website this morning.  FYI.  
http://beerandco.com.au/wp-content/uploads/2016/11/KinMining_2016November21.pdf
Summary

KIN listed in October 2013. KIN announced the acquisition of the Leonora Gold Project in April 2014 and completed the acquisition in October 2014.
Before acquiring the LGP, KIN was already very focussed on the Leonora – Laverton district and the acquisition of the LGP gives KIN the means to profitably exploit the geological potential on which it was originally floated.
KIN has worked through a revised resource and published detailed results of a scoping study, more detailed than other companies have been able to do as KIN has been thorough and diligent in its work, with most of the material in the scoping study being Indicated resources.
KIN’s share price has responded very positively to this valuation, being up nearly 3 fold in the six months since its release, though some has been given up due to recent softening of the gold price.
Using the mining and processing schedule published in the scoping study, and also the cost details, Beer & Co has been able to develop detailed cash flows to generate a valuation for KIN.
Beer & Co is of the view that KIN has significantly greater mineralisation than used as the mining inventory for the scoping study.
Beer & Co’s risked base case valuation for KIN is 29c/share.
Beer & Co believes that our valuation is likely to prove conservative in terms of

• Gold prices, as we use $1250/oz, and AUD‐USD of 0750; and
• Volume and grade of mineralisation extra to the scoping study’s 3Mt at 1.7g/t.

Final Comment

There is good upside risk to our base case valuation which is a premium to the current share price of nearly 40%.
Beer & Co imitates research with an BUY, High Risk recommendation