"anyone that suggests a dividend should be paid to a share that is at a drastic discount to it's fair value is a moron. I mean everyone. If there is a dividend on this share while this share is less than $3 - they I will conclude that the management are morons too"
Dalts, you just called me a moron which I take offence to.
in FY25 I have the following deck: tonnes processed 6.5 mT head grade 0.9 g/T recovery 80% gold price 2,400 USD/oz AUD 0.68 AISC 1200
With the above deck FCF per share will be about 77 cents
If KCN pays a 20 cent dividend and considering a 5% fully franked dividend is really good value on the ASX that implies a value of $4 per KCN share.
@Dalts365 you may want to look at this pig from the other direction. The investors will come when KCN start reporting they are making obscene profits and paying an obscene dividend based on the manipulated low SP (anything under $4).
After paying a full year dividend of 20 cents, the KCN SP will rise to a value that reflects that of a divvy about 5%, that will be a $4 SP. If the Geologists put the drills in the right places and build our MRE we will also be supported by a reasonable PE ratio
Using a modest payout ratio of about 25% will do the job IMO, with the remaining 75% they can pay down debt and drill the mining lease to have more holes than a podium at a Donald trump convention.
I am really looking forward to the next 18 months of mining and processing at our new capacity and feeding ore at 0.9% g/T
Note: in 2014 we processed 6.2mT at a head grade of 0.9 to give production of 134 kOz of gold hence with the upgraded plant a throughput of 6.5 mT is not unreasonable IMO.
KCN Price at posting:
$1.63 Sentiment: Buy Disclosure: Held
(20min delay)