Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in KIN?
Kin Mining NL: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Kin Mining set to commence gold mining alongside a rising gold price

The AUD gold price is trading near its all-time highs at around A$1,750 per ounce.
Gold bars and gold mining operation
INVESTMENT OVERVIEW: KIN The Big Picture
The company was awarded the 2017 “Best Emerging Company” at Diggers & Dealers

Kin Mining NL (ASX:KIN) continues to advance construction of its Leonora Gold Project (LGP) in Western Australia which is on track to achieve production in the December quarter of 2018.

The project is forecast to produce at an average rate of 55,000 ounces of gold per annum from its JORC resource of 1.02 million ounces and JORC ore reserve of 373,000 ounces.

The resources are spread across three deposits, Mertondale, Cardinia and Raeside - all which show good potential for resource growth.

With the AUD gold price near its all-time highs at A$1,750 per ounce, Kin has timed its move into production very well.

Awarded the 2017 “Best Emerging Company” at Diggers & Dealers

LGP sets a solid foundation for Kin who was awarded Best Emerging Company at the renowned Diggers & Dealers resources conference in 2017.

The definitive feasibility study (DFS) confirms LGP will be a high margin gold mine:

• Pre-production capital cost of $35.4 million including 18% contingencies;
• Pre-production capital payback period of 11 months;
• Estimated annual production of 55,000 ounces per annum over 7-year mine-life;
• Life of mine (LOM) all-in-sustaining cost (AISC) of A$1,038 per ounce; and
• Pre-tax net present value (NPV) of A$107.4 million.

Leveraged to a rising gold price

The project’s DFS valuation used a gold price of A$1,600 per ounce meaning when the gold price is above this level, the project’s value increases.

Significantly, using a gold price of A$1,750 per ounce, the NPV increases 35% to $145.8 million.

The LGP’s value is further highlighted by its AISC cost of A$1,038 per ounce of gold produced, which clearly highlights the high-margin project.

Exploration continues in tandem with construction

Kin continues to pursue its aggressive drilling campaign as Kin ramps up to production.

Drilling has commenced at the group’s Kyte orebody to extend on its indicated resource of 21,000 ounces of gold.

Expanding the JORC resource can increase project economics

Defining and increasing the mineralisation at Kyte aims to enhance the project economics and, in turn, provide the opportunity for early payback of the debt facility.

Increasing the resource at Kyte will also provide greater flexibility within the mine plan.

Drilling is also planned at other prospects where high-grade gold was encountered in 2017.

Kin’s interim managing director Trevor Dixon said: “Significant exploration is underway on Kin’s highly prospective tenure, giving an exciting opportunity to grow our project.

“The LGP is a project that, given its favourable economics, is set to be a low-cost gold producer with considerable upside for shareholders.”

View full KIN profile View Profile

Kin Mining NL Timeline

Related Articles

Gold
July 17 2018
The hard rock collaboration agreement with Omnia Mining has sent channel samples and rock chips for assay sampling.
Copper on the periodic table
March 08 2018
Historical high-grade ore stockpiles present an early cash flow generation opportunity.
Picture of pilot plant
April 05 2018
An impressive pre-feasibility study features a pre-tax valuation of $227 million for start-up capital expenditure of $65 million.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use