tremeerstrange, but watso had been tossing a few numbers through...

tremeer

strange, but watso had been tossing a few numbers through his mind this morning. no doubt in the past, watso has given his thoughts on the future share price.

ok - forget what watso may have mentioned in the past, suffice to say, that the 15$, mentioned by powerman , is attainable.

upon grant of the leases, then kcn should be able to ramp up production to about 150,000 oz per annum, and keep in mind, that there is no debt to service (at this level) so that would mean that the cash margin would be free cash flow. initially a price target of $8 - $9 seems to be a reasonable assumption, given that the company will have incredibly low production costs. longer term, the company will be doubling production, will eventually send the shares higher, but that is still a couple of years down the track. also the company will sell equity to the local thais, through a public issue, and the company should pocket a handy sum, which watso would hope will result in a capital return to shareholders of about $4 - $5 per share. watso has no idea how all of this works out, because it seems that the company has already sold equity to the thais, in a deal that watso cannot understand. anyway, the scenario is that a few years down the track, kcn will have about half the production of the chatree mine, which will be about 75,000 oz - and this should be a long life mine. the share price will of course reflect this .

longer term, the beauty of course is that chatree will, hopefully, not be the only discovery as kcn have a lot of ground, in what will, hopefully be a gold province.

watso is getting a tad long in the tooth, and cannot really be bothered with trying to make a dollar by trading stock. kcn have the deposit, and the prospects which could ensure a good steady dividend stream in the coming decades. of course, never discount the chance of a takeover