looks healthier, page-15

The discussion on the KMC board is limited to say the least. With that in mind, I have been closely investigating the company following the events of this year.

What emerges is a brilliant opportunity with a high quality asset on the back of epic mismanagement from Daws. Indeed, Lee and Kwok have seen this and have swooped in and now effectively own 50% of the company.

Some key insights I have made:
- The asset is still a quality asset. By this i mean ~430k oz in prime Kalgoorlie real estate, with many more oz expected as the company continues down the south along the high regarded Zuleka shear. Indeed, oz are going to come from multiple lodes in all directions.
- Lee,Kwok + Bowman factor: If you do some research, you will see Lee's vehicle SHL Pty Ltd is a top holder of Phoenix Gold (PXG) and Regis Resources (RRL). These guys clearly know what they are doing and have recapitalised KMC for a reason. Bowman is also an experienced operator in the area. The common thread is that all of these parties put money (indeed Bowman put in additional funds) in the recapitalisation. They are currently under water by ~30%, but i suspect this won't be the case for long given they hold ~700m shares of the ~1.2b register.
- Theme of consolidation?: Given the heavy involvement Lee and Co have in PXG and the previous talks between KMC and PXG, i sense there will be potential for a tie- in to some degree in the future.
- Grade is king: Bullant specifically is running at over 5g/t for ~300oz. This is sure to increase.

Anyways, those are a few points they I can identify. Happy to be corrected in any points. Ultimately, if we are talking about "buying when there's blood on the streets" (i.e. the best time to buy) then there's not much out there providing better value.

All IMO, DYOR.