KNG - Kingsland Minerals

[Sean K]

This has been a champion since the potential of Leliyn was realised a few months ago.

Sketchy TA looks like the blue line is a nice support area but it's sketchy. The easy money might have been made already as it heads to 40c ish which is where I don parachute with about half my treasure.

 

[Sean K]

This puppy was going like a champion and it looked like it was being re-rated above support but it's dived under in mid day trading. Hopefully recovers a bit above the blue line. MC still just $14m, so room to move if the graphite exploration target gets firmed up. Unless graphite tanks like anything else to do with batteries.

They recently announced a 'Strategic Review' of one of their uranium projects, but they don't say what they're doing. Cleo uranium was their 'flagship' but they've switched to the graphite play. So, Cleo is now the second banana. But, what are they doing with it? They note the great high grade drill holes and exploration upside but then don't actually say what they' doing. Selling it? Drilling it? Meditating on it? Bizarre.

 

[Sean K]

I've got a feeling this is coping the EV and Battery mineral curse treatment. Looks bad.

I'm out on the breakdown, but unfortunately I can't take it off the 2024 Comp spreadsheet. Might be my CTM of 24.

 

[Sean K]

Waiting patiently for the maiden MRE due this quarter.

I am not expecting it to cover the initial 5km strike length due to a couple of dams in the way of drilling. So it might only be 4km of the 5km strike. So, need to take a chunk off the tonnage expectations.

4000x200x100x2.6 = 208Mt

 

[Sean K]

I'm not sure what's going on here, but MRE 'commenced during Q' is not that same as delivering a maiden MRE in Q1 as previously advertised. Call me a skeptic, or a realist, or a pragmatist, but I smell fish. Maybe I'm a fisherman.

Having said that, I've rolled the dice and am back in for the short term just in case they produce something that surprises the Uber drivers. Like me. A couple of higher lows from the bottom is remotely encouraging.

 

[Sean K]

This tanked on Friday so I expect this to be about half what was promised.

 

[Sean K]

This is about what I expected but it might surprise the rest of the market. With just a $10m MC there's a big mispricing of the potential here.

When you add in the other 1km between the drilling (which will obviously be similar mineralisation) and the 15km potential to the north, this is gigantic. And it's not in Africa or owned by the Chinese.

Fingered crossed the met is OK.

 

[Sean K]

The closest peer comparison to this is Black Rock's Mahenege project in Tanzania which has 213m tonnes @ 7.8% TGC. Current MC about $80m or 8 x KNG. Leliyn will go much larger than this and it's in the NT not far from all infrastructure and down the road from port.

DFS numbers on Mahenge below. You'd have to guess that these would be a starting point for a KNG metrics.

 

[Dona Ferentes]

news flow n anticipation

 

[Sean K]

news flow n anticipation
View attachment 172672

I thought it might have gone much higher today. Maybe I'm missing something about the graphite market. It could be that synthetic graphite is affecting the demand for natural flake. Shiraz has been out asking for cash recently after being smashed the past year which doesn't look great on the surface of it. It might be similar to the nickel story in that the 'clean' pure product doesn't matter when China are just going to buy whatever is cheapest no matter the ESG credentials.

 

[Sean K]

This is my ramp for the month to allow @debtfree to change the yellow box to green in the spreadsheet and keep me in the comp.

My only hope is that the met work on this project comes up trumps and it's not just a giant pencil factory. Hopefully those results push KNG into the green for me and it stays there for the rest of the year.

The next thing that I expect to give it a boost is the other 15km of the graphite schist which they tell us looks the same as the current MRE. All they need to do is put 5 x DD holes spaced along the rest of the schist and show something like 200m @ 7% and it will be pretty easy to develop a resource target that could be 4 x the current one which is already Australia's largest.

We just need someone to want flake graphite.

 

[Sean K]

Well, this has gone backwards since the initial MRE on Leliyn. MC back down to around $10m. The biggest graphite project in the country musn't be very interesting. Even with all the talk about critical minerals and EVs, blah, blah, zzzzzz. It's killing my yearly comp numbers.

 

[Sean K]

These guys are running on fumes. Only had $1.3m at the end of March, so half the lights must be turned off already. I predict a CR next week. It should have come off the back of the MRE, but no one seemed to really like that anyway. Unfortunately, they're going to be raising at a pretty low price for maximum dilution effect.

I am becoming very suspicious about the graphite project. There's something wrong. Either it's pencil quality, or there's a Juukan Gorge on the schist.

 

[Sean K]

Looks like this is better than pencil quality.

I wonder when sentiment towards graphite will turn around.

Happy now to be in at the bottom.

CR imminent.

 

[Sean K]

They must be working under candle light at KNG. Probably a CR on the back of this.

Potentially the second largest graphite deposit in the world behind Shiraz.

Market will wake up one day, or there's something seriously wrong with this that I can't see.

 

[Sean K]

This dog with fleas is killing my yearly tipping comp. Maybe pencils is not the right thing to be investing in.

Or, the whole natural flake graphite / battery energy thing is a lode of bull and China have us all by the horns.

 

[peter2]

KNG has morphed from a uranium project to a graphite project while @Sean K goes through quite a descriptive morph himself, champion, puppy with potential, smells like fish, now dog with fleas. Only another six months to go. KNG could be anything by the EOY.

 

[Sean K]

KNG has morphed from a uranium project to a graphite project while @Sean K goes through quite a descriptive morph himself, champion, puppy with potential, smells like fish, now dog with fleas. Only another six months to go. KNG could be anything by the EOY.

I'll come up with something more scientifically descriptive and accurate next month Pete.

 

[Sean K]

This rat infested chicken coop is looking like it's going to spoil my New Years plans. They must be running on fumes now. Help me Obi won Kenobi, you're my only hope.

 

[Sean K]

@debtfree this puppy with flees in a chicken coop is killing my chance at the big prize. Groof!

Application for a ML in and they don't even know if it's above pencil quality. Huh?

Probably doesn't matter anyway, the Plibo Labor government will incorporate this land into Kakadu NP in order to appease the EDO green lawfare activists and win some votes in Western Sydney.