Well I did say I'm coming back, so it's not over for me. As I said before, I'm going cautiously this round as the price is stacked very high. Once I see consolidation at the current levels, I will gladly jump back in. In the meantime, I'd like to see buybacks take its course and reassess momentum. Gold is like the space shuttle; it has over a million working parts to get off the ground, and only one mistake can bring it back down to earth. Geopolitics, economics, social conflict and debt all contribute to how gold performs. If KCN were to start a dividend, it would no doubt secure its current levels.
KCN can afford a 10 cents per year dividend
KCN's market capitalization is $528.3M.
Their current share price is ~$2.05, which implies approximately 257.7M shares outstanding (since Market Cap = Share Price × Shares Outstanding).
Total annual dividend payout = 257.7M × $0.10 = $25.77M.
This means KCN would need at least $25.77M in net income per year to fully cover their dividend payments without using retained earnings or external funding.
Given that they have an AISC margin of $1400 per ounce and assuming quarterly production of ~20.5k ounces, their estimated quarterly margin is $28.7M USD ($44.8M AUD for a full quarter). If they maintain consistent production levels, their annual net margin could exceed $179.2M AUD, which would more than sustain a $25.77M dividend payout comfortably.
The big question is what does the BOD have in mind for future profits, expand or consolidate?
So yes @doncamilo and @Oldfolk I love dividends, who wouldn't.
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