Bruce, thanks for the input, but I would disagree on several points.
First there are many successful traders and investors out there and I am sure I am not the only experienced investor/trader holding KGL so your friends’ view is just one and I do not agree with it.
We all have our own investment/trading plans, criteria and risk levels.
While there are some perceived risks and uncertainties in this stock, as far as I am concerned those risks are over factored in to the sp and that presents a very high reward vs risk investment. Give me a stock that has more upside vs the risk level and I will be very happy to have a detailed look at it.
Better still give me as many as you can and ask your trader friend for some too. The more of these big profit stocks you can tell us about the better for all of us but I don’t mean the ones that have already gone up 625%, we can all find those after the fact.
“If you can make 20%, 50%, 100% or even 625% profit in the months leading up to final Andash approval, take it while it’s there! Then you can buy even more Kentor shares if all goes to plan.”
I think this statement is wishful thinking to say the least. To tell the average investor/trader they can go away and make 20-625% profit in 6 months and then come back to KGL is not sensible.
To say they might be able to make that, but they would also risk loosing money trying, is more realistic.
Just like we expect strong upside here over 6 months but understand there is some risk that it does not happen the way we expect.
Have a look at how many smaller stocks have been decimated over the last 6 months. You can find many more of those than you will those that have held up well like KGL (despite the delays) or the fewer still that have gone up anything like 625%.
Someone could sell KGL to buy something else, only to look back here a little later and see Andash got approved and the share price is up 50% or more from where they sold and they got into another stock which is now down 20%. That is just as likely to happen as what you suggest (I actually think more likely).
You can not know ahead of time with any certainty which stocks will have drill results well beyond market expectations to drive share prices up 625%.
To get gains like that you need to be in small market cap stocks which means more risk if they don’t come up with the goods when drilling.
There have been some winners but finding them before the fact is not as easy as you seem to think.
KGL is still the best reward/risk stock I know of. Please tell me of any that have better upside for the same level of risk. I am definitely always on the lookout.
Regarding gold going higher; I have invested for decades and always invest in resource stocks that are undervalued even if the commodity they are involved in falls a reasonable amount. While Burnakura does not fit that criterion I am not worried because of two reasons;
Firstly Andash certainly is undervalued at much lower gold prices and I believe Jervois will be too, and;
Secondly I have never been more confident about a commodity (or in this case a commodity that is actually money) as I am now.
That’s despite the fact that I first traded gold stocks (with Hill50 gold) when POG was just $260.
So I got in from the very low and I still expect to see much higher gold prices LONG TERM.
I know most gold stocks will do if I am right, but this one is the preferred one for me.
As an example my next preferred from a risk/reward perspective is SLR.
It’s a producer with no debt or funding needs and good organic growth and exploration upside and its 100% Australian so low risk.
However the forward PE ratios are around 9 for next year dropping to 6 the following year.
KGL is higher risk as it’s not yet producing but I think the risks are not high.
On the other hand the forward PE once Andash and Burnakura are running will be somewhere between 1 and 1.5.
That’s without gold going higher and without Jervois. That is why this stock has so much upside.
As for the risk (no Andash-only a small chance IMO), Burnakura on its own, by stage 3 of 4 will put us on a cash flow multiple of around 7 (after admin/exploration costs) assuming spot gold and we will have upside from stage 4 and later Jervois. The only risk is usual mining risks that you will get with any mining company.
Not a lot of upside on Burnakura alone but it offers downside protection while we wait for Andash and later Jervois, hence the low risk/high reward.
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Bruce, thanks for the input, but I would disagree on several...
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Last
9.0¢ |
Change
0.004(4.65%) |
Mkt cap ! $62.30M |
Open | High | Low | Value | Volume |
8.6¢ | 9.0¢ | 8.6¢ | $27.78K | 312.8K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 60000 | 8.6¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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9.3¢ | 14860 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 60000 | 0.086 |
1 | 100000 | 0.081 |
2 | 50918 | 0.080 |
2 | 25145 | 0.079 |
1 | 12820 | 0.078 |
Price($) | Vol. | No. |
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0.093 | 14860 | 1 |
0.100 | 25000 | 1 |
0.110 | 149798 | 2 |
0.130 | 157292 | 1 |
0.000 | 0 | 0 |
Last trade - 14.25pm 03/07/2025 (20 minute delay) ? |
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