150% in 16 months ain’t nothing to sneeze at so I’m selling KMK @ $2.59 and removing it from my model portfolio.
This is what I’m doing with part of my proceeds – Buying another Hunter-Dickinson company, Heatherdale Resources.
This is a very biased comment because I not only own shares but it’s a client of Grandich Publications. You need to also throw in I work with several other HD companies, which only adds to the potential conflicts of interest.
Having said that, here’s 10 reasons why I’m doing so:
1. Drill program continues with 2 rigs operation 24 / 7 / 365
2.More drill results expected later this month
3. HDI management apparently hasn’t been more optimistic about the prospects for Niblack project as they have ever been!
4. Niblack geological team (one of the best in the whole industry) has changed their view of the historical model which has created some new and very interesting targets for drilling
5. HDI isn’t always the most promotional but they are one of the few that deliver consistent high returns to shareholders based on high ratio of project success (case in point KMK)
6. Management believes Niblack project is quickly approaching economic threshold
7. We are in the “mother” of all gold bull markets and the high precious metal values at Niblack can start to attract attention
8. We are in a strong copper market and the high Copper grades can continue to attract attention
9. We are approaching a bull market for Zinc and the high grade Zinc zones can attract attention.
10. Expect the company to be vocal and active telling the story going forward
Bottom line: World class management in HDI, world class technical team, proven long term track record, advanced stage precious and base metal project, access to capital, continued strong demand for raw materials from Asia and other developing nations and speculation/gambling this can become the next big HD play.