Currently, with them just digging and transporting under contractors, it is between 1200 and 1300 oz. So this share is well and truely governed by POG. At 1600 oz, the PE on this is like 7 or 8.
At 1300 an oz, there is no money to be made at all!
They are thinking about their own plant. But I think the entire company, and the entire sector, is dead in the water at 1200 oz gold.
The good thing with KGM is they have no debt and no costs, other than contractors. So, if they need, they can 'go to ground'. But who wants that.
This company is a bet on POG. I have always thought POG would be 2000 before 1200. So it was a no brainer. Hmmmm, maybe I was wrong on POG.
This mob are good. But the gold needs to be sold at a fair price.
KGM Price at posting:
16.4¢ Sentiment: Hold Disclosure: Held
