Let me first start off by saying that I wouldn't class myself as someone in the know. I came across this interesting little company purely by researching it on the Internet. I like the risk/reward of this stock for a number of reasons.
1. I like the clear strategy of this company. It will be self financed by its Geoscience arm that is targeting $100m industry (very excited by this!). Geoscience will not only save the company money but it will avoid delays in getting the Geoscience side of the exploration completed, which is very important factor to consider.
2. Company is looking to get up and running very quickly mining Tin which is very much in demand at the moment.
3. Forecast and demand for Tin prices look very favorable short to medium term.
4. The Alluvial Tin projects of which the company has 5 altogether, 2 of which ( Esmeralda and Ewan) are ready to go so will be producing revenue this year. These Alluvial Tin projects are not expensive to run and will not be difficult to extract the tin so should be lucrative. They are hoping to get all these projects ramped up fairly quickly. They are also looking at acquiring more Alluvial tin mines.
5. Currently 12 Tenements held by Kangaroo Metals.
6. I also like the news regarding the 2 areas that they have discovered significant Uranium anomalies. Brett Teale sounded very enthusiastic about these. They are looking to test both these anomalies early 2008.
7. I like what I hear from Brett Teale. He's a young, intelligent guy who sounds very enthusiastic and motivated.
8. I like the look of the financials, $3.065m cash in bank and no intention on spending it, in fact looking to expand the cash in bank. As I already stated in a previous post they've no plans for any further financing so there is no watering down of shareholder value.
9. Share price is someway off its previous IPO offer price of 20 cents so I was very happy to buy in cheaply.
10. I am very comfortable with the risk/reward side of my investment. I like to get into these types of companies early so that I can enjoy the full growth potential rather than miss the opportunity.
I'm not going to speculate on the price because seriously it could be anything in 3/6/12 months from now. Current Market Cap of this company is approx $10m and it has over $3m in cash. This company is a tiddler at the moment but who knows what it could turn out to be or what they might discover�. if they find mineable Gold then it could go off the Richter-scale.
I've bought an initial stake and I intend to add again. This is a long-term hold for me. Also, as you pointed out, there is plenty of news due out very soon. I'm anticipating lots of good news flow.
Regards, D.C
KML Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
