re: Ann: Kin Mining to Acquire Leonora Gold P...
Hi SS AISC - all in sustaining costs which is now the standard metric companies use to disclose costs . What that metric has highlighted that cash costs are often 60-70% of AISC , and thus Leonora C1 cash costs of above 800 are high
I know NAVs issue were bronzewig related, but where leonora relates is exploration results at Hobby were mixed and NAV was unable to justify progressing it , they tried and reviewed various options - mobile plant , smaller mine etc etc. I really can't remember how much of this was phone conversations and how much from presentations but it was a combination of Bronzewig costs not coming down and Leonora not progressing that made me sell
I am not suggesting it won't be a good project , but on current resources , cut off grades, etc it's more like an exploration prospect . As for being open at depth - that's good but depth also comes with higher waste removal / mining costs and cash flow is skewed to later years and one needs to generate a good enough cash flow to get to higher grades
I support the view that the acquisition is something that was necessary to beef up the cash for a CR to support future capital needs , as much as it is about acquiring a future mine - not that it is a bad thing as it may work out LT
KIN Price at posting:
16.0¢ Sentiment: None Disclosure: Not Held
