It’s also about removal of risk. Sprott points out that so much production of majors is high cost. Not KLA who are happy for pog to go up but don’t care even if it goes down. Their cost of production is very very low so their forward story is more about increased production and exploration upside. See bottom of page 26, they are suggesting multiple Swan zones. This is a huge plus for us but also for repeat likelihood in adjoining leases such as 4 eagles and Tandarra.
KLA Price at posting:
$51.75 Sentiment: Buy Disclosure: Held
