Kingsgate is probably a ripe takeover target, thanks in part to inept management that is weighing the share price down. Moreover, the market simply does not seem to buy management’s story that the miner soon will be restored to its former glory, churning out a modest quantity of gold ounces, at a decent profit, with an enviable safety record.
The Thais would probably welcome a fresh re-set with anew bunch of faces. They are also keen to end the Kingsgate saga and bury the hatchet.
If the market capitalisation of Emerald Resources, the Cambodian gold miner, is anything to go by, as noted by a couple of posters, then Kingsgate is hugely under-valued. Ultimately, either the Kingsgate story will turn out far from rosy, or the share rating is completely out of alignment with prospective reality.
In my view, for what it’s worth, Kingsgate will be on the receiving end of a takeover bid within the next few months or so. If not, the share price soon will reflect more fully the fundamental value of the miner, whatever that will be.
Meanwhile, I look forward to the upcoming quarterly, for what is to be hoped, a stash of meaningful data. Apart from a wealth of mining information, I also hope to see a decent whack of shareholders’ funds(relating to mining assets written of in the past) restored in the balance sheet now that mining operations supposedly have resumed. According to their accounting policy, in the recent financial statements, (historic) asset values will be restored when mining operations resume, as opposed just to processing ore dumps.
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