KBL Mining Limited is an emerging Mineral Sands producer focused on the development of gold and silver projects.
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Following successful cost cutting measures, KBL is now concentrating on a clear strategy to boost revenue at Mineral Hill. These include the recently added lead circuit (first lead revenue was in the last quarter, with lead previously reporting to tails), the addition of a CIL precious metals circuit, mining of the high grade Pearse gold/silver deposit and accelerating underground development to open several mining areas in the Southern Ore Zone and enhance production flexibility.
The plant upgrades should allow extra value to be extracted from existing resources, and along with recent exploration success we believe there is now potential for at least a 10 year mine life.
At Sorby Hills, KBL has an advanced project with considerable scope for expansion. The current PFS is based on only 26% of resources, and there is the potential to develop this into a long life operation.
Our modelling indicates a valuation of $0.236/share for KBL – predicated on a successful implementation of the turnaround strategy.
KBL Mining Limited (“KBL”, ASX: KBL) is an Australian mineral production and development company largely focussing on the Mineral Hill Mine in western New South Wales. They are currently operating at around 250-300ktpa from underground, producing both copper/gold/silver and lead/gold/silver concentrates. Current resources and reserves give Mineral Hill a potential life of at least 10 years.
KBL is also looking at developing the Sorby Hills MVT lead/silver deposit in Western Australia. The mineralisation is on granted Mining Leases, and the proposed first stage operation as considered in the PFS has received environmental approvals from the State Government. Next steps will include completing a BFS, followed by funding and then development of what could ultimately be a long term operation.
We consider KBL to be a prime turnaround story – due to various factors the Company has not performed to expectations to date, and has been ignored by the market.
To address this KBL is now actively pursuing a strategy to turn around its fortunes, largely focussed on the 100% owned Mineral Hill Mine. Measures are targeting productivity, including cutting costs and increasing revenue. The seeds of success to date appear to be reflected in the recent share price history – the stock has rallied more than 50% in the last month...
ASX on Hotcooper: http://hotcopper.com.au/asx/KBL