future share price., page-11

I have a KCN true value price way, way in excess of $10.00. It is so far above I wouldn't feel comfortable posting it here.

True valuation of a gold producer is not just based on PEs.

It must also take into account the value of gold in ground minus costs in getting it out PLUS an estimate for exploration upside.

KCN has millions of ounces of reserves and resources with huge exploration upside at Chatree North and elsewhere.

In addition KCN will also seriously ramp up exploration elsewhere - KCN have already indicated they have a number of Chatree like targets.

Now imagine what the discovery of what looks like another Chatree will do to the KCN share price? That could easily add $500 million or more in the right market conditions to the market cap.

I remember reading when KCN was about $5.50 in the second half of last year a broker commenting that he expected the share price to triple on granting of the Chatree North mining leases. Posts were made in this forum to that effect at the time.

Upon granting of the Chatree North mining leases, with such a brilliant future, there will of course be takeover speculation which will also drive the KCN share price.

If, and it is only an if, KCN Management are prepared to accept an offer, it will come at a massive, massive premium. After years of sharemarket underperformance do you seriously think, just when things look right that KCN will be happy with a $10.00 or so takeover offer? No way imo.

Let's also not forget that KCN Managing Director Gavin Thomas swapped about 10% of AND for a relatively few KCN shares when KCN were trading over $6.00 and AND was below 50c. (AND is $1.60 today.)

So just when things look brilliant for KCN you wouldn't want to immediately give up your interest in what will be the most exciting mid tier gold producer on the ASX imo to an opportunist takeover bid.