COVID 19

Some thoughts and opinions on the implications of COVID 19:

I am quite pleased that Kin has managed to raise some more funds and is still drilling. Mining operations in WA including drilling might be paused for months in the near future due to the virus, and cash might be hard to raise. Come to think of it, if Kin had started a build, or had just started mining, the virus could have amounted to serious setback

I am hoping they get enough drilling done to allow some sort of estimate of additional resources in the new discoveries. On the other side of the crisis competition for capital might be intense, so the project needs to be attractive. Belts and braces - increased GP plus expanded resource - makes sense to me. Even with a higher GP - which might head to $3k and add $1 billion to the value of Kin's resource - an expanded resource extends the mine life and makes for a more solid project.

It looks to me if there is a general pause in mining activity Kin could just stop field operations and do desk work for a few months. Actual mines might be harder to shut down and slower to ramp up.

Personally I am not expecting any movement towards another PFS or DFS until some of the uncertainty around COVID 19 is resolved ... a few months at least. Testing entire workforces might get things moving sooner, if that becomes feasible. I do expect that the intention remains to develop a mine once the project economics are not only solid but exciting enough to bring in funds. Maybe pick up some more ground from receivers if nearby explorers don't make it, assuming some or all of Kin's main backers keep their shirts (or deep pockets).

Overall I think it is reasonable to surmise Kin is well placed to ride out impacts of the virus on mining and take advantage of any surge for gold developers afterwards. Fingers crossed.