KCN 0.26% $1.89 kingsgate consolidated limited.

adjusts hedgebook

  1. 4,742 Posts.
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    Kingsgate has adjusted its hedge book to take advantage of possible future rises in the gold price and is able to sell at spot. Risk is covered bt a cantango of forward options and puts.

    This is a coutious but sensible risk management decision.

    KCN has said it expects to produce about 160,000 oz gold this year plus significant silver credits.

    Last half year it averaged $315,this year they sholtd average above $325, At this rate and on past cost preformance a profiy of $65mill is not out of the question.

    That is almost 90 cents per share. With this new hedge structure it could go a lot higher.

    At $3.00 it is a 10% yielding stock and with the upgraded reserves life of the mine will exceed 10 years at current production rates.

    I cannot find another stock that can match this one,even at current prices.
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Last trade - 11.26am 09/08/2022 (20 minute delay) ?
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