The stock is consolidating nicely. The sellers have had a chance to lighten up/get out and there have been no shortage of buyers.
After the rights issue dust settles, KGL will have 1,061M shares. Assuming a 16c share price, that is a market cap of $170M which would include a cash component of circa $70M.
That implies an EV for the total assets of $100M. When one considers Andash will be generating free cash flow of circa $100M per year at current gold/copper prices, KGL is in fact trading on an EV/FCF of 1. I have excluded the $50M debt with Macquarie at this point in time as KGL will be in a position to pay that off completely after circa 6 months production. Mind boggling really. All from a straight forward open cut mine.
In anyone's language, an EV/FCF ratio of 1 is incredibly cheap. An EV/FCF ratio of 3 is more in line with listed peers globally. This in my opinion justifies a KGL price of circa 50c just on Andash alone. Add in the exploration upside (which in my opinion is huge) and one can see a share price well in excess of 50c by the time Andash is fully commissioned in 1st quarter 2012.
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Last
9.8¢ |
Change
-0.007(6.67%) |
Mkt cap ! $67.84M |
Open | High | Low | Value | Volume |
10.5¢ | 10.5¢ | 9.8¢ | $63.66K | 623.1K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 80148 | 10.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
11.0¢ | 81731 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 4586 | 0.110 |
2 | 80148 | 0.100 |
1 | 101000 | 0.099 |
2 | 338462 | 0.098 |
2 | 197378 | 0.095 |
Price($) | Vol. | No. |
---|---|---|
0.110 | 81731 | 2 |
0.120 | 314549 | 4 |
0.125 | 200000 | 1 |
0.130 | 157292 | 1 |
0.150 | 9046 | 2 |
Last trade - 10.29am 07/08/2025 (20 minute delay) ? |
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KGL (ASX) Chart |