KNG - Kingsland Minerals

[Sean K]

This turkey must be about to go to the market. $1.3m in the bank at the end of the last quarter and spending about $500k a quarter on electricity and directors fees.

This is potentially going to be almost as big as Shiraz who have a MC of over $200m, 10x this gobbler.

Or, it's just a pencil factory.

It seems that natural graphite is not really required for batteries and the Chinese are happy to use the fake stuff for their EVs. Makes a lot of sense. Create massive CO2 emissions to make emission free cars. Much like the myth that nickel sulphide was going to be preferred over laterite from Indonesia. It's all a con.

 

[Sean K]

KNG is killing me in the yearly comp @debtfree.

Having potentially the largest graphite project in the universe, close to the main road to Darwin, is not enough for anyone to care. I think it's because China are controlling the market and natural graphite is more expensive.

And, they're about to run out of money.

I think their only hope is the US EXIM bank investing.

Or, pencils start being in high demand.

 

[Sean K]

Well, another month and another snore fest over at KNG, @debtfree

The only thing of interest this month has been my realisation that their 'going forward' does not include any drilling on the rest of the schist so they don't need money for that. All they seem to be doing for the foreseeable future is met work and mining studies. I suppose they want to be sure they can make spherical graphite thingies before they go to the market for more cash to get a few rigs spinning.

I doubt that's going to happen in the next two months so this is going to kill my yearly comp numbers with a big red X in one of the boxes.

 

[Sean K]

This giant turd of a flea with rabid puppies on it might yet get into the green by the end of the year comp finish line.

I knew they were running out of money, but didn't see anything in the chart suggesting a strategic investor.

Maybe it's only enough to keep the lights on.

Or, it's RIO taking 19.9% of it.

 

[Sean K]

If the "Strategic Investment" is CSIRO chipping in $50K then this is going to cave in and be sent to oblivion.

What a joke.

 

[Dona Ferentes]

just read your narrative @Sean K and, what can I say?

 

[Sean K]

just read your narrative @Sean K and, what can I say?

Even if CSIRO is not the "Strategic Investor" why do KNG need to solicit $50K for a "Kick-Start" program for "Australian Start-Ups and small businesses"? This is an exploration company with the largest graphite deposit in Australia. It's not a "start up".

I have to wait until the trading halt is lifted, whenever that is, but it looks like there's something seriously wrong with this flea bitten turd of a horses rotten hoof.

 

[Sean K]

The turd burger might have turned a corner with this investment. It's not RIO, but proportionally, for a $10m MC company, this is OK, I guess. I suppose it keeps the lights on for another couple of quarters and they can do some drilling, which wasn't on the cards until they had produced battery grade material.

Maybe the stars are aligning for the 2024 comp for me. I just need this go go green and PDI and SVM to be taken over in the next 8 weeks.

• Kingsland Minerals secures $2.56m investment at 22% premium from Quinbrook Infrastructure Partners
• Quinbrook has also agreed to offtake graphite concentrate produced by the Leliyn project
• Leliyn concentrate could be processed at Quinbrook’s planned processing facility at Darwin’s Middle Arm precinct

Special Report: Kingsland Minerals has received a strong show of support by way of a $2.56m investment at a 22% premium that could lead to the development of an integrated graphite mining and downstream processing industry in the NT.

The strong show of confidence comes from Quinbrook Infrastructure Partners, which subscribed for 11.1 million shares in the company at a 22% premium to its 30-day volume weighted average price.

This will see Quinbrook – a ‘value add’ investment manager with a specialist focus on the energy transition – emerge with a 15.3% stake in Kingsland Minerals (ASX:KNG) and a seat on its board.

While this is a clear sign the company’s 194.9Mt Leliyn graphite project – Australia’s largest graphite deposit – has caught investor attention, it is by no means the only takeaway from the investment.

Quinbrook has also agreed to buy all graphite concentrate produced by the project for processing into value-added products including battery-component manufacturing in Australia and internationally, and will provide renewable power for its operations.

A graphite mining and processing hub​

“This is an important development for the company. One of Australia’s largest renewable investment managers, Quinbrook Infrastructure Partners, has recognised the potential of the Leliyn graphite project to supply graphite concentrate to the battery market,” managing director Richard Maddocks said.

“Quinbrook’s expertise and experience in identifying and developing renewable energy projects has been well documented.

“The strategy to establish a vertically integrated graphite mining and processing hub is also underpinned by the provision for offtake and renewable energy supply agreements with Quinbrook.

“We are pleased to have Quinbrook on our register as a cornerstone investor and look forward to working with them to develop Australia’s largest graphite project.”

 

[Sean K]

As suspected about the graphite market. Killed one of my four yearly picks.