This was posted on the 10ba99er club KIS channel site today.:
A few of you have been asking about what's happening with KIS as its price is currently drifting. We have posted their latest quarterly highlights. We also spoke to some people connected with the company yesterday and here's a quick update of what we got from them. We didn't speak to the company directly so be aware this is second-hand info:
As you know KIS need approx 72 mill financing to start building the plant.
From the quarterly updates you can see KIS now have no debt and approx 3.8 million cash on hand and about 20 mill ops still to convert at 10 cents each =A$2mill. So they have plenty of cash for now.
In addition, the Tas govt has already confirmed a A$10 mill 10 year loan
so KIS still need A$62 mill more.
We rationally believe that should be around A$45- 50 million bank loan and around A$15-20 mill as a straight grant from the federal govt under one of their critical metals development program funds.
The issue is Govt's is slow and KIS- so apparently KIS don't realistically expect this grant to be confirmed till the end of the month or into June. But they still apparently expect it to happen
In the meantime, they have been getting on with arranging the bank loan (apparently several banks are in discussions with them as it's a very lendable asset now) and the word we got was it is believed to be almost done. This should hopefully be announced very soon which no doubt will give the stock a new sugar hit and rally. We would like to expect the announcement within this month at the latest.
Lastly, instead of just waiting for the expected govt grant to be confirmed (which, of course, could be like waiting for godot as it's not yet done and it's the govt!) They may be planning to do another CR to a new cornerstone investor like the Swiss DACH AG. This also would be very bullish as it was last time. So then they are on their own timetable - If they do this before the grant and the grant comes later it'll just be extra money. for them.
We are confident the news of the bank financing being arranged will kick this stock back north hopefully well into the 30's and maybe into the 40 cents range. And we don't expect it will be far off. The equity portion will seal the deal - whether from a fed govt grant or a new cornerstone group - or both.
With the Tungsten price up almost 30% now from their DFS calcs and looking strong, plus with their financing apparently almost ready, this counter should soon stop drifting and rally up again soon. So we would suggest it's time now to start gently re-collecting more for the next expected un up to 50cents ++.
KIS Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
