THe current market cap. of SNN which owns San Anton is only C$89 m. Kings own 72% of SNN which in turn will own 66% of San Anton in future. Effectively, Kings owns about 48% of a say, 9 million oz gold equiv. deposit (which equates to 4.32 m oz of gold equiv.) The market cap. of SNN is grossly undervalued and I can see a re-rating of Kings once SNN is reintroduced to the Canadian investors. I am sure Kings management must be disappointed with the Canadian team and they would be fixing that up shortly. I do not doubt for a minute that Kings will bring San Anton to production despite the gold grading being just average. I believe that it is cheaper to mine the gold in SA because it is a hill and labour cost in Mexico is very cheap and abundant. Lastly, Dudley and team have been operating in Mexico for many years from BSG days and they would not be pouring good money into SA if they are not fully convinced of its viability.
KMN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held