KCN 4.62% $1.76 kingsgate consolidated limited.

Gold has held at this high level for 1.5 months now. Enough time...

  1. 5,699 Posts.
    lightbulb Created with Sketch. 1400
    https://hotcopper.com.au/data/attachments/6173/6173408-bd5ba127c59ac88b688726e5470f4eb1.jpg
    Gold has held at this high level for 1.5 months now. Enough time for it to start flowing through to cash flow.

    Compared to 3 months ago, it's +15%. That changes gross margins from 30% to 45% or something along those lines. Minus royalties (20% marginal rate?), so 30% -> 42% instead. 30% is an example starting point.

    I don't care too much whether gold continues to jump. I mainly want it to hold up here for a long while. A jump would be a welcome bonus though.

    Mining ore is finally starting, and the 2nd plant is finally starting. So before too long, production/revenue will be tripling.

    It'll be nice if gold holds up here while that happens, plus the 30+ days for the cashflow cycle to catch up. So moving towards triple production, with +12% revenue multiplier (after marginal royalties rate).

    But for now, it's a nice boost to margins, helping the quarterly cashflow to be as strong as possible, even if on low production, so making it easier to fund the outgoings (CAT, interest, debt repayments), and making us slightly less desperate for better funding or an NE sale.
 
watchlist Created with Sketch. Add KCN (ASX) to my watchlist
(20min delay)
Last
$1.76
Change
-0.085(4.62%)
Mkt cap ! $456.2M
Open High Low Value Volume
$1.80 $1.81 $1.75 $566.1K 318.8K

Buyers (Bids)

No. Vol. Price($)
14 36600 $1.75
 

Sellers (Offers)

Price($) Vol. No.
$1.76 9061 18
View Market Depth
Last trade - 12.44pm 23/05/2024 (20 minute delay) ?
Last
$1.75
  Change
-0.085 ( 4.81 %)
Open High Low Volume
$1.80 $1.80 $1.75 22111
Last updated 13.07pm 23/05/2024 ?
KCN (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.