When they get the mining leases and / or selldown sorted this stock should soar. Obvious takeover target to US gold producers.
Attractive on these metrics, all of which are coveted: - Growth from exploration. While everyone goes on about their growth, world production is basically flat. Majors want growth. KCN provides it. 150 koz in '06. 350 koz in '08. - Low costs - KCN about US$220-250 per oz. Bottom quartile. - PE. FY'06 EPS of 19.3c despite agressively delivering into hedges. With production expansion it is easy to see EPS of about 40c in '08 (100% basis).
Smart investors are wising up that gold stocks are a VERY mixed bag. The operating leverage often isn't there because of hedging and costs. Also, very few have a history of decent EPS growth. The exploration upside seems to be the key.
Does anyone know what KCN will do with the divestment proceeds?
I dont hold KCN but am considering buying some.
KCN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
