It is hardly surprising, finally, to see a long-delayed and below-par financial package unveiled by incompetent management. A big shot of fresh funds though does provide relief for beleaguered shareholders’ rising concerns about their company’s continued solvency. Meanwhile, doubts about management capabilities in mining, and related activities, mount.
No point in wasting time listing management’s repeated failures. Most posters are fully aware of them, apart from those who steadfastly refute hard evidence staring them in the face.
Purely from an analytical perspective only, I believe the share trades at a massive discount to what it really is worth. Of course, the share rating is expected to remain stunted by the market’s dismal view of management, almost, no matter how events turn out over the next year. And then there is also the widening management credibility gap. I do wish I could say I know, rather than say I believe, but sorting out fact from fiction, when it comes to Kingsgate, is not always possible.
Anyway, if you are prepared to take risk, especially with gold and silver prices soaring, Kingsgate is a share for you. Soon the company will become, once again, a gold miner, with an exemplary safety record, in Thailand producing over 1000, 000 ounces of gold every year, most likely highly profitably. It is also expected to ramp up silver production by improving the recovery process. By year end, if things go reasonably okay, all debt, or nearly all, should have been repaid and the company embarked upon an aggressive buy back scheme. We want no dilution, us shareholders, because of the issuance of warrants and options to reward, handsomely, ruthless financiers, thanks to our benevolent management.
The company does have plenty of blue-sky exploration prospects. Indeed, there is a decent probability that the characteristics of the gold deposits found at Chatree are repeated elsewhere, especially close by, within an extensive exploration rights portfolio. It also supposedly has wonderful silver and gold mining deposits/ prospects in Chile. On sale for a long time now, it just drains the company’s limited financial resources.
We are probably now in the last chance saloon for a predator to strike before the share price takes off. Or, the mine’s renaissance stalls, or collapses, as does the share price.
Either way, up or down, the share price is likely easily to outperform over the rest of this calendar year. Roll up and throw the dice.
(20min delay)