KCN 0.30% $1.68 kingsgate consolidated limited.

Well I am glad that there is some positivity around this, as I...

  1. 543 Posts.
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    Well I am glad that there is some positivity around this, as I was a little underwhelmed at first - as it was not the kind of acqusition I expected.

    I do think that it could be a good acqusition if things work out at Challenger - I was not happy at first as I had avoided DOM due to some of the risks and uncertainty of the economic viability of the ore below the fault line in the Challenger mine. If they have problems there then it will not be nearly as attractive as it looks now.

    On the other hand, for DOM shareholders, given that we all know here there will be a low-risk, huge increase in cashflow from KCN once the expansion is finished and a potential, SP, weighted by the 0.31 share ratio, 30% higher than it is now, I think they could be getting a good deal (assuming a 100% increase in the KCN SP which is reasonable even with a stagnant POG). And they get some good in-ground discoveries as well.

    All in all, though, if things go to plan, the merged company will be swimming in cash flow in 12-24 months time and readily able to make more strategic acquisitions.

    Just have to trust management, and as you say Treemer, they have done the right thing by us to date... (except for letting Andean slip away).
 
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