The company's small size ($95M) and expected spending plans imply that some dilution will certainly occur as assets are developed. It has $24M cash now but cash flow is likely to be negative for a while. Cash flow was positive in the first none months of 2024 but this was due to a very large collection of receivables. KLD issued $10M in new stock in the period. Management has decent experience with public companies and have discovered commercial assets before. Insiders also own 24% which we would consider good skin in the game. Risks are high, but the stock has done well and investors are paying attention. Dilution and exploration results are probably the biggest risks. Pros are that the company has cash now, and has seen good drilling success and has permits and an active drilling portfolio.
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