RE:RE:Union Reefs...Maybe the
Globe and Mail author, Niall McGee, should read the below before publishing a ridiculous article yesterday quoting an analyst at PI Financial saying KL will "run into a wall" when it comes to generating free cash flow. He thinks the $ 320 M for Macassa will put a big dent into FCF. This is CAPEX spread over 5-7 years per the news releases, so completely doable with probably current close to $ 285 M sitting in the bank.
The analyst (Phil Ker) needs to take a refresher course on the entire KL story unfolding, re-read the Swan Zone metrics/metallurgy, take into account the North Territory ounces that'll come online next year + Cosmo restart, all the 2018 exploration currently being done to once again increase reserves and I am sure it'll be another big reserve update in the next 9 months...before moving his recommendation from Buy to Neutral.
Total fiction on the
Globe's part. Obviously the guy wants cheaper shares for PI Financial.
JIN
PulpLogger wrote: Forgot to add that the mill at Union Reefs is BIG: 6850 t/d, so KL could base a big operation from there.
Here's one poster, with further details/speculation on what NT could become. I'm not sure am ready to put it in FVille's class, but on the other hand it does appear to be likely to run more than 100k ounces/year. Cosmo was running 60-65k/year; Maud Creek's PEA is 52k/year), and the previous owners ran the Crosscourse pit at Union Reefs at 80k/year; if all contributed, it would put us at ~ 195k ounces/year.
One commenter on the recent Seeking Alpha piece: "Another positive catalyst for KL stock price in 2018 is potential restart of now idle Cosmo mine and Union Reefs mill which were put on care and maintenance in mid 2017 due to lack of economic gold reserves. in December 2017 KL announced a new gold discovery at Cosmo, 500m of strike with 1200m downdip defined so far. certain drill cores had visible gold in them. Richest intercept was 0.31m of 4,750gpt gold.Other intercepts included 19.1m of 11.7gpt gold, 8.8m of 22.6 gpt gold, 18.7m of 40.8gpt gold to name a few. Since 4Q17 KL has 6 drills turning at Cosmo to firm up block model with mgmt guiding for restart of production in late 2018. Since Cosmo is a new modern mine, given potential gold resource in situ, Cosmo may throw off as much low cost gold production as Fosterville mine, so KL gold production could potentially really surprise market on upside."