... look out below ..., page-2

re: ... look out below ...and back in play with the fall in the andean share price, it would seem that kcn bid has a slightly better prospect.

i had a look at the andean presentation the other day, and they included a fin review article, which highlighted some of the problems faced by kcn. what amused me, however, was that the article also stated that kcn were PAYING TOO MUCH for andean

the problem for andean is that they do not have any cash flow, to underpin the shareprice. given that they need to spend money to prove up the resource, then they will soon be running out of money - which means more share issues etc etc.

what surprised me, was the relatively low grade of the andean resource - about 1.7 gm per tonne. i tend to think that they have been drilling in the high grade parts of the orebody, in an attempt to get some good numbers out. i seem to recall, that when i looked at some drilling results some time ago, that the drilling was done, very close to known areas of high grade mineralization, but the results did not add too much to resources

the andean share register is controlled by a few groups, so it might be hard for kcn to takeover andean