"The political instability of the Kyrgyz Republic, with the government considering cancelling all mining licenses in the country and then going through a process of renewing them etc. (this could take months)"
I don't worry about this too much. Our license is about to expire. The government don't need to use this clause in Kentor case. Simply they will modify the clauses as they see fit and offer us an extension. Take it or leave it.
Besides they have modified existing Kumtor license and tax regime several times. Their is no real certainty in that regard EVER. But tax is still fairly attractive over there.
Btw great post. Very balanced. Mind you KGL has done alright too. If you got in around 7-8c (now 70-80c) then you're still well in the money.
I agree you don't buy now on future expectations of gold. But all stocks and investments are forward looking so you certainly would want to be bullish on gold to bother.
But if you're bullish on gold then the sector as a whole is worthwhile. Not specific to KGL. We also have benefit of transitional phase from explorer to producer which is usually rewarding. But again you can probably find other explorer with good leverage to future gold prices.
KGL reputation is still intact. They might miss some deadline but they are quick to address and announce these issues. Probably one of the better companies communication wise and the use "insight" very much to shareholder benefits.
Kurulti is probably the one issue they have left unfinished. Dangled the carrot but not updated.
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