Agree with everything you have said, Lordaga. If every aspect can be optimised then $7.50 is not impossible but requires every single thing to go perfectly right for that to happen which leaves a myriad of ways it could fall short of that, as you have correctly outlined.
For me, the market rerating of the P/NAV ratio to it's mid cap peers will require 4 things to be resolved:
1. Resolution of TAFTA 2. Resolution of Zurich claim 3. Payment of dividends regularly 4. Disposal of Nueva Esperanza
When the above is done and NAV is 7.50 from gold price appreciation/mined ounces expansion/AISC reduction then Mr Market may well offer me $7.50 for my shares. The unknown variable here is whether this will all take 5 or 15 years to achieve. 5 years gives me a CAGR of 29%, 15 years a CAGR of 9% from current price. All of which makes me a non seller at <$3.75 in the short term.
KCN Price at posting:
$2.08 Sentiment: Buy Disclosure: Held
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