RE: Full Petrology Report24 Mar 2022 08:08
I think some are being overly critical of KAVs work.
The KSZ drilling was a success, provided you didn't invest with a view to make a quick buck off one or two drills...I say a success as....
No one has ever drilled that deep and we have proven our drill partner is solid,
They have a much better understanding of the stratigraphy/geology from the successfully retrieved cores,
They have much higher confidence of the target location from the DHEM,
DHEM has perhaps found a feeder and potentially will be clusters of targets nearby,
The original target is now 2x it's original Siemens that got most excited in the first place and is reading 16k.
Etc
As for Molopo it may well be a decent project but it's certainly not a must have for KAV to acquire. I've always said dilution is the problem for me with this deal. KAV management were very smart in fact in the way they constructed this deal on a variable value basis.
Sadly those who invested short term and primarily on this very initial KSZ drill outcome or who saw it as negative (not saying anything wrong in that) pushed the kav share price down. The deal would have been at a more heavily diluted cost to shareholders.
The counter argument of kav management being poor is that actually they considered existing shareholders. Far too many companies don't and crack on regardless to empire build and 'save face'. The deal isn't dead but it's not completed at any cost to the company or current shareholders. It was clearly never guaranteed and this was made clear. It may still happen in time. Without the data or the new detail specifics no one can really judge this though.
I really struggle to understand if an investor has little faith in management why they keep their stock positions in the company the team they don't have faith in manage.
Ive personally added recently as my view is the opposite. However I'll hold back adding more to ensure I can participate is it does drop further.
This post isn't a dig at people with a different view. I'm just sharing why I think these outcomes are positive ones, or at the least not that negative. However as said above having a strong negative view and still holding perplexes me. Sometimes you have to take a loss if the reason you invested isn't right for you anymore.
Atb
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