goldman sachs - kingsgate undervalued , page-2

Just further to this i will add some specifics from GSJBW from 21st March:

- They beleive there is emerging value in the gold sector at this particular time.

- They rate SBM and KCN as the cheapest of the gold stocks under their coverage with a gold price of USD $950 p/oz and $1,000 p/oz being factored into perpetuity.

- KCN has previously traded at a premium of btw 5-9% to GSJBW underlying base valuation. It's currently trading at a 26% discount.

- They forecast production on 148koz, which is below company guidance, whilst recognising their may be some short term downside risks to production the market is overcompensating for a potential shortfall with a significant discount to base NPV.

Additionally they view the DOM acquisition as favourable because:

- lowers overall operational risk and country risk
- increases overall production base, without overly diluting the cash cost of the business
- provides access to additional technical skills in underground mining that can be applied to Thai assets.