Hello John
I think you coverd the bases in your post. LTL's % of MPV was never a market maker for it and it is now even more dilluted.
It made a diference when LTL still had 48,000,000 shares a few years ago but they have diluted themselves out of any serious leaverage even if they hit an elephant which they are not likely to do.
Their pipes are good but very small.
When they announced that they were putting them into production at I believe 2,500 t/d the market knew that the cash flow could only be modest even with exceptional grades.
Without a takeover play, they would have to have ten pipes like Jericho to begin to move their stock. You might see a double on any new pipe announcements but probably not until spring.
Neither Ashton nor Kennecott have announced any material finds on their optioned properties so no gas bubble there.
My guess is that Desmond has determined to put the pipes into production quickly at Lupin use the cashflow to finance ongoing exploration and slowly build from there. Further dilutions only shoots him in the other foot.
The property is still very prospective, but huge. They have shot their bolt in a massive exploration program and have been forced to option two huge parcels to maintain their interests and not lose the claims.
Financially, they have few options but to hunker down and build from the ground up. Some blue sky here but float will dampen big moves.
Regarding KLA. You can see my thoughts on that thread, but in short, I don't like company management but that is irrellevant in this play. SUF is the operator for 70% of the action and KLA is along for the ride. I believe share float is only 18,000,000 so leaverage potential on any pipe find(s) is enormous.
SUF announced a good surface kimberlite showing a week ago and macros in derived clay on site. Drill on site now and EM to define (pipe/blow?) size over next few weeks. Six more trains in area with similar chemistry and this find will allow SUF to fine tune their frequencies on their EM surveys using this find as a litmus test.
So far, this property and WSP's to the south and west have largely been dyke country with one exception. MPV have pipes to the east but that is still some distance away.
The market knows this and is probably waiting for SUF to confirm a pipe not another dyke. It is totally land exposed and water will not slow evaluation or development.
They have credibility (SUF), diamonds, kimberlite, multiple trains, small share float, can develop year round, and SUF desperately needs stability of a canadian find (motivated developer).
If SUF confirms a pipe and if they can report further success off one or more of those other trains, KLA is an immediate five to ten dollar play, assumming management don't dilute share float(?)
IMHO, KLA has the greatest potential right now to make serious $$ in the NWT diamond play.
Regards |
