Kin set for $500/oz margins, page-2

Yep, reckon Mr Fitzgerald is right, "...there is nothing in its rating for what the company says will be “the next big thing’’ once the LGP is up and way".

"...The LGP’s forecast cash margins of more than $A500 an ounce at the current Aussie price of a tick over $A1,600 an ounce will be too hard to ignore.

That sort of margin would see a payback on an upfront development cost of $34.6m (less if an option on a second hand plant is taken up) of about 18 months for a project with an initial mine life of 6.5 years."

Then, the plan is "...to chase down the at-depth potential for high grade resources along a 12km stretch of the Mertondale shear zone."

"Because drilling below five known near-surface deposits and previously mined open cuts has generally pulled up at 200m despite the region being known for its deep mines (Gwalia is down to 1,500m), the chase for the next big thing with the eventual help of LGP cash flows will be worth watching."


Worth watching indeed, Barry!