KMC 0.00% 0.6¢ kalgoorlie mining company ltd

could kmc be a 5 bagger in 2013?

  1. 19 Posts.
    After continued study, I am even mote compelled to believe KMC could be a huge performer for 2013. Whilst the recent volume spike is encouraging, I feel it has a long way to go:

    The Bowman factor: Bowman put his hand uo for an additional 100m shares in the recap following the ~18m he had prior in the Daws days. If you look closer, he runs a specialist underground mining firm (http://www.gbf.com.au/). This indicates he believes there is significant money to be made from the underground workings.

    Exploration upside: The lode structure appears to be open in all directions, and the south specifically looks highly prospective. This may provide the incentive to get to the 1m oz mark at a quality headgrade.

    Premiums of nearby players: Specfically, if we look at nearby exploration plays such as PXG and EXG and the market caps these companies are currently commanding (PXG $40m plus and EXG 80m plus), it is clearly quality real estate. It also opens up the potential for consolidation and potentially takeovers.

    Lee and Kwok factor: I have previously covered this, but I cannot stress the importance of having proven winners backing the project. Like with most things in life those who are the best attract the best, and with the firepower of these investors KMC can finally achieve its true value. Indeed, Lee has seen RRL and PXG materialise and did not pump a significant sum into KMC without having done his homework.

    Where to from here?: All the infrastructure is in place for the underground workings, so no spending is required there. In addition, continued resource updates will enable progress with the resource upgrades and modelling. Exciting times ahead!

    All IMO, DYO.
 
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