I reckon to really push longer term they would need at least something in the 2-5Mt range, even if the grade ain't great but the strip ratio is right - sustainable over a number of years and a good kicker for anything else they seek to acquire or fund - Pearce north more than likely never going to deliver that tonnage, in fact when you really break it all down and dig through the announcements, mineral hill may not stack up on its own with current resources. Maybe the best days are well behind the ol' and we are just doing the final sweep up. Maybe they need to do some more surveying and try to identify some new targets in the remaining 85% of mineral hill that they haven't touched.
I still reckon this is undervalued at under 10m but a cleaner, less indebted KBL will show a much truer value - I would suggest 20-40m based on cleared debt, limited mineral hill production life, and Sorby not currently being developed but in the pipeline. Might be pie in the sky, but its gotta be worth at least 2 - 4x what it is worth now when immediate debt issues (inc Feb 2017) are derisked.
KBL Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
