I'd like to start a discussion of what is required to get to a share price of $3/share (or more).
Here's my complete list of what is needed: 1) Ore grade of at least 0.7 g/t
That's it. Nothing else.Recovery is immaterial as it will be above 80%. AISC is immaterial since it is a function of ore grade.
There is however one risk. The only risk I see, short of a meteorite hitting the plants, is political risk. As long as the Thai government behaves itself, and it needs to to attract foreign investment, all will be good. Even if gold falls dramatically (say even by by one-third), we'll still achieve $3/share with ore grade above 0.7 g/t.
The Tonka trucks are moving and it's only a matter of a short time before ore grade is above 0.7 g/t. It may already be the case. I certainly will be asking the question at the AGM, "what is the current ore grade going through each plant?".
KCN Price at posting:
$1.29 Sentiment: Buy Disclosure: Held
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