Hey Roo, I will keep this short, I am still watching KIN and......

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speculator101

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19/04/24

21:08

Post #: 73433329
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Originally posted by RooBendigo: ↑

@RnR I don't entirely disagree, but I can't quite see how the merger would benefit Delphi and not the rest of us.I followed Delphi into DCN and now have GMD shares worth 3X what I paid. I went into SPR (GCY) about the same time, another Delphi company and am up about 5X. Bear in mind Delphi will probably have to sit out a vote of KIN shareholders, and PNX requires a majority of holders as well as a majority of shares, so the small holders can kill the deal if they wish.

KIN have said clearly they were looking to use their cash to advance projects which couldn't be funded. Fountain Head is definitely in that category, and there is reasonable amount of planning in place for a CIL plant for gold and silver (there is a lot more silver than gold there) and then a stage 2 Hayes Ck Zinc Silver and Gold. I think the plan was to produce zinc concentrate, and to process the silver and gold at Fountain Head.

I don't think anyone has proposed mining Uranium .. they have just said they have a permitted deposit ... in my mind that just means something to sell or get a royalty from.

The polymetals at Cardinia are mentioned because they seem to have found them, and the Jupiter polymetals plant is in C&M across the road. Kin has been clear there is no plan for them to do any mining or processing at Cardinia ... they do want to do more drilling to establish the value of what they have.

The risk for the company in the future is GMD and RED merge and all of KIn's ore at Leonora would be stranded surrounded by GMD/RED owned mills ... the mill owners would set any price they liked, unless KIN can afford to leave its gold in the ground until the mill owners were ready to deal fairly. Hence the need for a project which could produce cashflow away from Leonora. Building a plant at Leonora would make no sense ... there is plenty of processing capacity around.

I didn't like the PNX proposal coming out of no where, and I didn't like Delphi being the only obvious connection. But the simpler explantation might be that the Fountain Head / Hayes Ck project is a good fit for KIN's capital, and it is lot easier to negotiate and figure out if the two companies combining will actually work, given the individuals employed, when there is overlap between the boards. It could just that PNX offered a feasible opportunity because of the existing connections. If someone could explain how Delphi could benefit from the merger, but not me, I might be persuaded otherwise.

I will wait and see. Personally I could do without the GMD style hype, but I do want to hear a less generic plan before the vote.

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Hey Roo, I will keep this short, I am still watching KIN and... in regards to your question about Delphi, for me there is a glaringly obvious benefit for them:
To get access to all KINs cash to fund PNX.... because they have 50% of PNX.... and clearly don't want to have multiple capital raisings to undertake the work that needs to be done to develop PNX assets.

I agree with @RnR.

Not that I have a great track record in regards to KIN
They keep surprising me with their deals in Leonora.

Good luck to all holders.

KIN Price at posting: 7.1¢ Sentiment: Hold Disclosure: Not Held
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