RE: RE: RE: Must be news coming monday! ' Victor King in the youtube presentation also said that the south Kiaka highgrade opens up a host of options as to how to develop Kiaka; not sure what he meant by that.'
As I recall (although I highly recommend watching the presentation for a better explanation) if they could use the Sourth as a high-grade starter pit, then they could achieve the same cashflow with less tonnage (and therefore less capex for equipment) during the startup, and then use the cashflow from the starter pit to finance expansion of mills, facilities, etc. Therefore, lower startup cost, faster return on investment, and less funding required to develop the Kiaka Central mine (self-funded through proceeds from the Kiaka South starter).
Hope that helps. I think it's worth mentioning as well though, that the economics of a 1g/ton (shallow) deposit change pretty significantly if the price of gold rises - so something that's not economical at $1000/oz, and marginally economical at $1200/oz becomes wildly profitable at say $2000+/oz. Its the same dynamic that makes the oil business such a boom-bust venture. Once you cross the threshhold of profitability, the cashflow starts adding up pretty quickly. So the current insane undervaluation to me is really an implicit assumption by the market that the price of gold isn't going up any more (whereas I think as long as real interest rates are negative it's going to continue to go up)