more director buying at 10 cents, page-4

Peter,

Of the two, I think KMN has the upper hand on the resources here. Being operator is a big advantage. I think Barbara might be the same style as Eloise, but its incredibly small - 2.4Mt - and you can't really hope to extract that kind of deposit size without high costs.

I think that SMD has to hope that KMN raises the money to push Kalman through to final feasibility. I'd expect that if they were looking at a 2Mtpa operation at Kalman, the total capex there would be in the order of A$350M approx, and SMD would be up for roughly 30% of that weighted on the equity stake in the resurces which exist on SMD's tenements. They could do 30% equity funding 70% debt in normal times, which would see SMD up for $30M of equity to raise.

Steep.

But KMN would be up for nearly $60M in equity themselves, and they aren't much better off.

It will be interesting to see how this plays out - SMD and KMN are bth as weak as each other in this JV. SMD needs Kings to get the feasibility funded and then Kings needs Syndicated to be up for funding the mine.