FYI I was a KAS holder and supporter for 5+ years until last week, I decided to bail out and take my haircut when it became apparent that no Achmmach project funding package was going to be announced before the offer closure and I didn't fancy remaining as a minority holder with PALA manoeuvring their way into a controlling position after yet another destined to fail CR attempt. IMO to remain a holder you need to take a view that PALA will run the company in the interests of all shareholders and not just to maximise returns to themselves. Good luck to you if you do, maybe I just have a more cynical perspective after watching their behaviour since the AMR debacle.
Looking at the Achmmach project, the 2018 DFS forecasts an NPV(8) of US$98m and 23%IRR with a 4 year payback based on a tin price of US$21,000/ton for capex of US$96m (A$137m @ US$.70c). KAS will therefore need to raise $A100m+ to fund their 75% project share, which is a big ask for a company with a current market cap of <A$11m, especially when they have granted senior security over their primary asset to their major shareholder to secure a @$5m convertible loan. There is a lot of risk built into those assumptions and I don't know if a 23%IRR is sufficient to tilt the risk/reward balance for small shareholders in KAS given PALA's now controlling stake.
If you wish to speculate on the tin theme you could always invest in companies actually mining and selling the stuff, just keep in mind the excitement over cobalt this time last year!
Anyway, best wishes to the small holders, especially the faithful such as @Hottin who have supported the recent CR's and I'll continue to take an interest in the project despite no longer holding. Cheers!
KAS Price at posting:
9.5¢ Sentiment: Sell Disclosure: Not Held
