Gold is now at US$2,220.80/oz. Spectacular value.
KCN last gave guidance that Plant 1 would be in production end of March 2024. The next trading day is Tuesday 2 April 2024. KCN would be compelled to issue an announcement on 2 April that gives the status. I don't care what the status is, as long as it is accurately and clearly reported with enough information to evaluate when Plant 1 will be operational and higher grade ore is likely to come on line.
All we need is certainty. In time we can expect 120,000 oz/year of gold production. With an AISC of US$1,200/oz (is this correct?), this would amount to US$120m/yr. That is, AU$180m/yr. This for a company with a market capitalisation of $300m.
With 257,751,692 shares on issue, $180m/yr is $0.70/share/year in earnings. Assuming a P/E ratio of 8, this would mean a share price of $5.60/share.
To this there are potential upsides and downsides. On the downside there are equipment breakdowns, a significant drop in gold price and government instability. On the upside there are improved efficiency, improved ore grade, improved ore resources, improved gold production (it was 180,000 oz/yr in 2010 using the same plants) and a significant increase in gold price. Looks pretty balanced to me.
All we need now is higher grade or (>1 g/t) and both plants operating. Is there any reason that the KCN share price would not be circa $5.60/share once these happen?
- Forums
- ASX - By Stock
- General discussion
Gold is now at US$2,220.80/oz. Spectacular value.KCN last gave...
- There are more pages in this discussion • 473 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add KCN (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.62 |
Change
0.000(0.00%) |
Mkt cap ! $416.2M |
Open | High | Low | Value | Volume |
$1.61 | $1.65 | $1.59 | $1.509M | 935.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 32143 | $1.62 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.62 | 9317 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 32143 | 1.615 |
1 | 3402 | 1.605 |
2 | 4017 | 1.600 |
1 | 3402 | 1.595 |
2 | 22287 | 1.590 |
Price($) | Vol. | No. |
---|---|---|
1.620 | 9317 | 1 |
1.625 | 17000 | 1 |
1.630 | 5322 | 2 |
1.635 | 3402 | 1 |
1.640 | 170007 | 3 |
Last trade - 16.10pm 26/04/2024 (20 minute delay) ? |
|
|||||
Last
$1.63 |
  |
Change
0.000 ( 0.98 %) |
|||
Open | High | Low | Volume | ||
$1.62 | $1.65 | $1.59 | 60783 | ||
Last updated 15.59pm 26/04/2024 ? |
Featured News
KCN (ASX) Chart |