Silver, page-361

Talk about leverage to the price of precious metals.
KCN is an AUD $500m company with (at current market value):
$21,7 Billion Gold Resource
$7,8 Billion Gold Reserves
$6,3 Billion Silver Resource
$3,3 Billion Silver Reserves
Total Resource Value of $28 Billion
Total Reserves of $11,1 Billion

I believe these numbers could well be significantly understated with potential to increase reserves by upwards of 600,000 Oz Au - this was mentioned by the company in one of their presentations.

Reaching Steady State of 100,000 Oz Au per annum (conservative), using current gold and silver price and based off last quarter AISC adjusted for increase in Oz produced and increase in Royalties for the higher gold price, I get the following Operating Cashflow before Loan Repayments, Corporate Costs etc:

100,000 * US$3300 = US$330,000,000
AISC = $1,625/Oz = US$162,500,000
Operating Cashflow = US$167,500,000 = AU$ 257m = $1.00 per share
Interest, Other Leases, NE and Head Office Costs for the year of circa AU$64m
Net Cashflow (and probably similar to earnings) of circa AU$193m = $0.75/share
Puts KCN on a one year forward PE of 2.9, or Earnings Yield of 34.5%

MiningNut - please interrogate my numbers and tell me if this looks reasonable.