I bid for some KIS raise but was scaled back heavily so will be...

I bid for some KIS raise but was scaled back heavily so will be in market for more. First time I have come across them.

The Dolphin Tungsten Project has all approvals in place. It's one of the few high grade deposits in the world and is only 1km from port and infrastructure.

KIS have already signed offtake with WBH and Noble Group for around 70% of the annual production. That is bankable, meaning they will be able to borrow against the offtake agreements.




The $70M will be debt funded and given the cost of capital at the moment, could come at a few % or nil if they get government assistance being a critical metal.

The project summary below speaks for itself. With KIS grade is king and there are only 2 larger deposits out there, but at 1/5th the grade.

TGN has only a slightly bigger resource but at grades nowhere near KIS. Their market cap is $140M.



In terms of location and infrastructure the project is a dream. 1km away from deep sea port.



There is a good chance the Critical Minerals Facilitation Office (CMFO) declare Dolphin a special economic interest. This will result in tax breaks and likely low interest finance.

In terms of potential revenues I've done some rough calculations. They have one offtake that is for 50% of their production p.a, worth A$69M over the 3 year agreement. That equates to $46M in revs p.a for production on 3,000tpa.



It won't be an overnight Disallowed lets keep expectations reasonable. However with the highest grade in the world, great location and infrastructure and 70% of annual production accounted for it is about as derisked as you can ask. The director and other major shareholder Elphinstone Holdings applied for a heap of stock which saw it oversubscribed. They have done 95% of the work, the last thing is the finance and then cashflow starts.

I'd say this could get to somewhere close to TGN valuation. My guess is KIS will look for additional acquisitions to be funded by free cash.