The sole reason why the share price is not performing to expectations is because the ore grade coming from the pits is not increasing and is stuck at around 0.6g/t - production for the current quarter will probably be around 19k ozs Au compared to 15.8k ozs Au for the Sept quarter or an increase of around 250ozs Au/week and the only reason for this increase is the processing rate has increased from 5.2Mtpa last quarter to 5.6Mtpa this quarter. It's now going to be harder to increase the processing rate from here so the ore grade has to increase to around 0.8g/t next quarter if they're to achieve their production guidance of 25k ozs Au for next quarter. But, of course, we have no timeline from management as to when the bottom of 'A pit' becomes operational that seems to be necessary for the ore grade to increase.
KCN Price at posting:
$1.35 Sentiment: Hold Disclosure: Held
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