preciselyThe one and the same. The fact was KIN had a number of heavy hitters looking at the project with all of them doing DD. Not one of them picked up on the likleyhood of “significant” cost overruns and ALL were prepared to back Harper and Sproule to execute that strategy.
so what changed? Kin got rid of the two people who were responsible for designing it and were the best people to DO and run the build.
so like politicians they commission one of the consultants who was involved in the original DFS to
undertake a high level analysis to essentially compare apples with oranges and came up with a “significant” cost overrun based on doing the build another way.
munkton undertook a high level study and Lo behold it came back confirming the upside we all know is there. His model means spending (raising!!) more money of shareholders money now rather than using the cash flows from operations.
shareholders were continued to be told by Dixon that all was good and the strategy build by Harper and Sproule was working only to be told 3 weeks later it wasn’t. No wonder the SP crashed!! I
i am so looking forward to asking Dixon in public what really happened! I’m expecting a very lame response full of denial and blame.
