I feel you deeply.... Spent a couple of hours this morning, going over the last quarterly again..... I'm fundamentally missing something....
On the surface of it, it seems like it's approaching extreme value. We are on a prospective PE ratio of 6.21, which I know isn't current given the fall in POG, but as compared to an industry average of 15....? Their ave total cash costs were about $1050/oz all in last quarter.
Roughly - if they can increase production as forecast (by 50% for the quarter to deliver 200koz for the year), with a POG steady, and relative to their total cash cost falling 33%, then it stands we should do okay, with a prospective dividend yield 5-6%. So it almost stands up as a dividend play right now, with gold at $1400/oz, with big leverage if POG goes up and / or they deliver on their forecast growth.
ps - just on a previous post re: Challenger - total cost of $1900/oz, this includes massive depreciation and amortization of around $800/oz, which may be accounting but it's a massive number. I need to understand that mine better than I do......
KCN Price at posting:
$1.71 Sentiment: Hold Disclosure: Held
