Post by
merlin991 on Mar 02, 2021 5:36pm
Why K92....
Thank You it's the Law. Please don't be touchy about things. This is just a forum. i suspect I am somewhat older than you and I don't get too excited about any controversy. I think you are a good guy and I am not trying to disparage you.
That DT gives us nothing useful I believe. He may be playing to get cheaper shares but the decisions are by the share owners and not him. So just ignore him.
I was drawn into K92 because of grades. Truly exceptional and in a part of the world known for monster resources. Grasberg is just down the road and given the great success of the drill at Kora. This is certainly way over 20moz of Aueq once the drills keep on churning and the results keep on coming.
Thirdly (grade and trend area are first two) is management. A really good team with great skils and saviness. A great resource can be totally butchered by a crappy management. I have learnt that well personally.
Fourthly for me was/is the PNG discount. I bought much more cheaply for a really fantastic company because of PNG. I am a risk taker and since the Porgera mine has been making great money for decades I thought that risk was/is overrated. In fact the risk is diminishing as we go. The team has shown local savvyiness. BTO in Mali is also a great team that has utilized local savviness to it's advantage.
Lastly the financial scenario that Lewins has carved for K92 is truly exceptional. They have not put a foot wrong.
What price is K92 for K92 longterm? A 10++moz company producing over 500moz per year in 3 years I say will have a EV of over $4b given that FCF may be close to $1500++ per oz with gold charging back to new highs. Thats a $750m sum per year and it will be spewing that out for a long long time.
In 3 years this won't be a $10/share company. Try $30. If a great porphyry comes about... try $40.
By the way add another zero for my returns over the past year... I play scrabble ocassionally but my main passion is travel and not your fancy hotel rubbish. I probably have been places you have not even heard of.
Comment by
ITSTHELAW on Mar 02, 2021 6:19pm
Merlin, excellant response, definetely won't badger you anymore!
Comment by
merlin991 on Mar 02, 2021 8:26pm
We will be making a lot of money on K92.... that's why we are here. GLTA
Comment by
BlindBoy on Mar 02, 2021 9:36pm
Excellent post, well reasoned train of thought, and I fully agree with your rationale. As for DT, I put him on "ignore" a while ago. At the time, he had made 3 posts on this site, zero positive comments, and all of which were negative re:K92, and then goes on to claim he held 70k of it, and was going to start dumping it. That didn't pass the smell test.