The directors and management have 5% of shares on issue according to AGM address lodged with ASX. This seems a better than average figure for miners these days. (Excepting 1 man operations)
With $2M+ per qtr cash positive, the company seems in good state for a market CAP of $20M, and in the medium term the SP could advance with any good news that hits the ASX. Volumes are very low, so this share is not for shortterm daytraders who get in and then cant get out. In the medium term it looks attractive.
WE have had little news from the company lately. One drilling result in 3 months, which was a good result.
So with ongoing drilling, production and development at Prominent Hill and Sorby Hills likely to move ahead soon, we can hope for more regular announcements and improvements in SP.
So what is on horizon: New CIL circuit to increase gold recovery generally and process Pearse ore within 12 months. Sorby coming on stream within 3 years. More rich ore being sourced from new mine areas. New man on board to sort out Sorby financing estimated cost to KBL $52M.
It is against the directors (and shareholders) interests to equity finance Sorby development (unless shares are issued at a massive premium to today's SP)_ and they have the resources to complete the new CIL circuit
KBL Price at posting:
5.4¢ Sentiment: LT Buy Disclosure: Held
