adjusts hedgebook

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.