Huge capex Anyone know the estimated capex for the Kingking mine ? I thought I read somewhere that it is close to $2 billion. Isn't this too large a project for a company with only $60 million market cap to take into production themselves as is their stated objective ?
Per the mineweb article below the market is currently much less favorably disposed towards juniors with enormous low grade projects with correspondingly huge capex:
https://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=152553&sn=Detail&pid=66
All hail! Grade is King again for junior gold stocks
A number of gold juniors look to make their projects more palatable - and generate far quicker payback for investors - by decreasing their scope and/or focusing on higher grades.
Author: Kip Keen
Posted: Friday , 01 Jun 2012
HALIFAX, NS (MINEWEB) -
In these difficult financing days the phrase "Go big or go home" has been turned on its head for juniors. There is heightened fear among investors that juniors in general cannot pull off or sell big, complex mining projects. Soto assuage those fears, many precious metals juniors are downsizing project scope and flocking to higher grades to ensure less daunting capital cost estimates or sexier cash flow scenarios. Grade has always been King. It just happens that as financing options go famine, King Grade turns out to be a tyrant.