GOLD 0.51% $1,391.7 gold futures

Can KCN avert a takeover?

  1. 3,798 Posts.
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    Kingsgate has consolidated well at $2.45-2.48,and is ready to advance again. With gold holding $US315, KCN becomes a target for an eagar agressor.

    KCN having established the first major gold mine in Thailand represents a great target for a major wanting to move into an arena where costs are very low.

    KCN should be able to pay 30c dividend in its first full year, one could expect at least 15c to be announced in October (when they release 6 month figures)

    In the meantime get ready for a bounce to $2.80-85 when the next wave of overseas buying commences.

    Most mature gold miners are Mkt Capped at x20 earnings--this would mean $10-12AUD price for KCN.

    KCN is still a bargin in anyones terms.Directors will have to mount some defence to avert a takeover,or most likely get some spirited support from "europe canny" investors, and very soon as I feel a move is on.
 
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