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KCN 38.5¢

great half yearly result

  1. Great Half Yearly Result by Kingsgate.

    12.5c dividend
    33.5c EPS
    US$77/ounce cash cost of production.

    Looks like dividend would have been higher, except for the fact that they are funding the plant expansion entirely from cash flows.

    Significant repayments of debt is occuring.

    Drilling has been expanded to 14,000 metres which is a good sign.

    Given that the wet season occurs in the first half of the year and ounces produced was 77,071 and full year is still expected to be 160,000, it looks like full year will be much better than in prior year.

    Directors have clearly said in Directors Report "In the expectation that the strong gold price continues and Chatree performs to expectations, Kingsgate is currently forecasting that the profit after tax WILL exceed US$25m". This is the first time that they have said that they believe that profit WILL exceed previous forecasts, not just may.

    If gold price holds up, this year could be a bumper profit.

    Regards
    Marvin

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