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| Eröffnet am: | 16.12.10 16:59 | von: bernhard290. | Anzahl Beiträge: | 10 |
| Neuester Beitrag: | 06.02.11 12:34 | von: bernhard290. | Leser gesamt: | 4.399 |
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Kentor Gold fully funded
The de-risking of Kentor Gold [ASX: KGL] took another step this week.
The company announced it had raised $51.8 million through the recent rights issue.
Once you add in the debt facility from Macquarie Bank, it means the Andash Gold-Copper project is fully funded.
That's great news for a company that was trading at just 6 cents per share a few months ago. Don't forget that Kentor was in real danger of going to the wall if the civil unrest in the Kyrgyz Republic had gotten worse.
Fortunately it didn't, and Kentor's gold project is on track.
Of course, there are still risks to this stock. The main project is still in the Kyrgyz Republic. And the country is still yet to form a viable coalition government.
Even so, as any resources investor will tell you, securing funding for a project is one of the biggest hurdles for a company. And Kentor has managed to do it in a politically volatile climate.
Kentor is currently trading around our maximum buy price of 18 cents.
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While some may put gold's rise over the past several years as being a reflection of U.S. monetary policy, there's a lot more to it than that as the metal's fundamentals are changing.
Author: Jeffrey Nichols
Posted: Friday , 17 Dec 2010
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http://www.mineweb.co.za/mineweb/view/mineweb/en/...il&pid=102055
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companyinsight.net.au
Can you briefly remind us of the economics of the Andash project? What is the rough capital requirement?
Simon Milroy
The project capital cost is US$96m. US$50m is planned to come from the project debt facility and the
balance from the recently raised equity.
Date of lodgement:
21 December 2010
Title:
“MD Milroy Gives Market Update
Andash is exceptional. The bankable feasibility study earlier this year ranked it as one of the lowest cost
gold mining projects in the world. The gold cash cost is estimated at US$29/oz after copper credits,
including all production, treatment, transport and refining charges, as well as royalties.
This cash cost is calculated using an assumed copper price of $2.75/lb, at current copper prices, the copper
credit increases and the forecast gold cash costs at Andash are even lower.
We are planning annual production to average 70,000 oz gold and 7,4000 tonnes copper for the first six
years, and several nearby prospects provide the high potential to expand and extend the operational life
considerably.
...
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companyinsight.net.au
With funding completed, what are your major tasks and timetable in moving towards production at Andash?
Simon Milroy
We are now awaiting final permitting from the local council. Full scale construction works are due to start in
March next year in order to meet our target of commissioning the plant in March 2012.
As soon as we receive the local council permit, we plan to embark on an aggressive drilling programme at
Andash Zone 1, Andash Zones 2 and 3 and the surrounding exploration prospects. Exploration drilling at
Aktash will commence in the new year as soon as the weather permits which is likely to be in April. We
plan to have a total of four diamond rigs working in the region and depending on the results, I would
anticipate these rigs to continue working all of next year.
Höhrt sich sehr positiv an!
Remember the relevance of copper. The Andash project is a gold-copper resource. As well as digging up gold, Kentor will recover copper too.
Although the copper resource isn’t huge it’s big enough to give Kentor a significant copper credit.
That means the cash costs to recover the gold –taking into account the money received for selling the copper – is very low. One of the lowest cash costs for any gold mining project.
Of course, we can’t be certain copper prices will remain high forever, but we are more certain that the gold price will remain high… even taking into account cyclical price fluctuations.
But at the moment, the key development for Kentor will be the successful formation of a Kyrgyz government. Once that happens the company should receive final approval from the local council, and development of the Andash project can begin.
https://www.cia.gov/library/publications/...rld-factbook/geos/kg.html
News:
http://www.pr.kg/
News (Central Asia):
http://www.timesca.com/
7,500 tonnes of copper will bring in $73,000,000 at current prices which covers TOTAL costs (including royalties etc) per annum and still leaves $20,000,000 profit.
70,000 oz of gold therefore will bring in free cash flow of circa $120M per annum, which would value KGL at approximately $1.2Bn or $1.13 per share. Once Aktash ore is blended into the Andash ore, the production will exceed 100,000 oz per annum and the economics improve by 56% due to the higher grade of ore from Aktash. That could push the KGL price north of $1.70 IMO. The 100,000 oz/annum gold production will take until 2013 to achieve but I'm prepared to sit on this investment until at least then.
I think the "perception" of political risk in the future has actually provided the opportunity to buy cheap stock. Of course, there is always a risk but each investor has to decide for themselves whether they are comfortable with the risk.
Personally, I am.
This will trade in a narrow band until we get more news.
The next important milestone (after the current court case) is the official signing off on the debt portion of financing by Macquarie Bank. This is due by January 31. Once that is in place, KGL are free to hedge the copper production (and I am confident they will do that if copper remains around current prices). If that occurs and they announce they have locked in $70M revenue for the first year of production just on the by-product, investors will then really take notice. All in my opinion.
melua
By Jason Hamlin, on January 10th, 2011
In what could be the financial shot heard around the world, the state of Virginia is considering the establishment of a joint subcommittee to study whether the Commonwealth should adopt a currency such as gold or silver to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System.
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WHEREAS, many widely recognized experts predict the inevitable destruction of the Federal Reserve System?s currency through hyperinflation in the foreseeable future.
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http://www.goldstockbull.com/articles/...ld-for-when-fed-breaks-down/
Kentor Gold court decision
Positive news from Kentor Gold [ASX: KGL] on the court hearing in the Kyrgyz Republic.
If you recall, the court case involves a claim by an ex minority shareholder in the Andash Mining Company (AMC) - a company 80% owned by Kentor subsidiary Kaldora.
The claimant appealed a court decision to declare its ownership in AMC invalid.
Expectations were the court would make a decision last Friday. But due to time constraints the hearing was held over until this week.
I got in touch with Kentor managing director Simon Milroy and he said a decision by the Kyrgyz court should be available soon. And that Kentor should inform the market shortly afterwards.
Well, as it happens Kentor made an announcement to the market this morning:
"In the Kyrgyz Republic on 19 January 2011, the Talas Oblast Court rejected Invest-center Talas LLC's (ICT) appeal and left the decision of the lower court (Talas Interdistrict Court) without change....
"Kentor owns 80% of AMC and this holding is not affected by the declaration of invalidity of the transfers of interests amongst AMC's minority shareholders. Prior to acquiring its 80% interest in the Andash project, Kentor complied with the requirements of the Strategic Objects legislation."
So, good news for Kentor so far.
The final case in the offing is being brought by ICT against Kentor "alleging that Kentor was somehow responsible for the loss of its holding in AMC. However, the Company is confident that the case has no merit..."
Look, Kentor Gold is still a risky play. But in my view the risk is worth it when you consider the upside potential.
Kentor Gold [ASX: KGL] remains a buy recommendation in the Australian Small-Cap Investigator portfolio with a maximum buy-up-to price of 18 cents.
Stay tuned for more details...
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Aus dem HC
Beiträge von mljet, der mit KGL vertraut ist
No doubt political/social unrest risk is the biggest one for KGL because technically there is virtually no risk in the mining side of things. It's as simple as one can get in gold/copper mining. Shallow ore body to be mined open pit with the ore body sloping down the hill as per the landscape.
If there was no social unrest risk, then this stock would probably be closer to 30c now moving towards 50c once production commences.
Personally, I don't see significant risk socially/politically but that's just my opinion. Comfortable buying at these prices.
und
There will always be potential for political risk/civil unrest, however, I make the following points in trying to explain why I am not concerned. There will always be small minority groups who are not happy. Happens in every country on the planet.
1. Despite previous corruption and major civil unrest, the Kumtor mine (Canadian owned) never missed a day's production because of civil unrest. It currently produces at a rate of 700,000 ounces of gold per annum. They did lose some production when the workers went on strike over pay matters. Resolved quickly.
2. There is now a democratic Govt for the first time. The will of the people for change is very strong. They are sick of living in poverty.
3. The current democratically elected Govt is very pro economic development and Andash will be the second largest mining project in the country, providing jobs for local people.
4. The Govt is a 20% shareholder. It's in their interests to see this mine in prooduction.
5. A petition FOR the Andash mine was signed by 83% of the local Talas population who live close to Andash.
6. Historically, the major flare ups occur between Uzbeks and Kyrgyz in the south of the country near Osh. I don't see this as an issue for the Andash mine in the far north of the country.
http://news.goldseek.com/GoldSeek/1296831844.php
Sehr guter Artikel.