I originally purchased shares in both KCN and DOM ~2years ago and DOM was ~$4.6 and KCN ~$4.2. Since then I have added to my DOM because I think, and still think, it is substantially undervalued. It pays good dividends and has just completed a major capital works upgrade with an aim to increase production to 120koz/year. They are a 'no fuss' miner IMO and get the job done. The biggest factor in depressing the DOM shareprice is IMO the fact that they tend to prove up reserves on the fly rather than define a resource through a big drilling campaign, so there reserves never look that good on paper - but I suggest long term production performance is impressive. (Shareprice performance, not so good).
All that being said, I think KCN have pounced on what they perhaps, and I, think is a very good undervalued asset. If so, you can't really argue against that.
I'm hoping for a scrip offer at 3 to 1...
Cheers Ben
KCN Price at posting:
$11.15 Sentiment: Hold Disclosure: Held
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