Valuations of Kingsgate

Hey everyone,

I am Kelvin who is based in Singapore and we run a company where we manage our internal capital.

Kingsgate is one of our positions in which we are trying to develop our conviction further. We already have a position in it. If anyone has connections or the emails of the management, please contact us.

My team and I did a simplistic valuation of Kingsgate.

There are a lot of assumptions used in our models such as the gold price, capex required to restart the mine, ongoing maintenance capex and whatnot. The model is extremely sensitive to the gold price. Noting that gold price is at an all-time high, there is a possibility of gold dropping back to the range of $1,400 / oz. This reduces the intrinsic value of Kingsgate.

Go to https://docs.google.com/spreadsheets/d/1chlpycPP-soXmjXxtT_pfreamigwJBuSaqcoeEUljP4/edit?usp=sharing to access the valuation model, save a copy then play with the various variables. This is done by my colleague, Bjorn, so full credits to him.

We do not look at sentiments, we look at cold hard figures. Also, we are not looking to prove that we are right in our approach, we simply want to know what are the opinions from the rest and how can we improve the model further.