Kingsgate (KCN)

Discussion in 'Stocks & Derivatives' started by SilverSanchez, Nov 1, 2011.

  1. Lunardragon

    Lunardragon Well-Known Member Silver Stacker

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    I have washed my hand long time ago with this KCN....it has burnt me so badly (bought at $7 sold at $5).
    yes, previously kept a wishful thinking on fundamentals for this stock which shouldnt have in the first place.

    again, Trend is your friend !
     
  2. finicky

    finicky Well-Known Member Silver Stacker

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    Yes, one stock I won't be backing is Kingsgate, and if I were I doubt I'd buy any till it broke above previous swing highs with volume. Kingsgate still in a downtrend. But has a bottom been put in. That hasn't been decided yet.
     
  3. Lunardragon

    Lunardragon Well-Known Member Silver Stacker

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    Lets watch this on the sideline to all the way down to 40c
     
  4. finicky

    finicky Well-Known Member Silver Stacker

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    So that's your call then - 40c? :p
     
  5. AngloSaxon

    AngloSaxon Active Member

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    Today the CEO and CFO 'resigned' with Board chairman and the COO stepping into those roles in an interim capacity only.
     
  6. bellinvest

    bellinvest New Member

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    Grabbing another parcel of these guys today on Open.

    @ $0.64 these guys are worth a punt! Some fantastic projects in the streamline and continued exploration throughout their tenements will sure up resources - Their project in Chile could be quite significant once a thorough infill drill program is undertaken. High grade, at depth and extensive could* be the outcome. If you're bullish on the longer term fundamental of Ag - these guys are very leveraged to the shinny metal (having approx. 200-250m Oz/Ag across their projects).

    Things have been a bit quite lately but they have held ground on the $0.60-$0.65 mark a few times through November/December which could* suggest a bottom.

    With a market cap of approx. $140M and having the operating mines + their Bowdens & Chile Silver projects in the pipeline in planning - KCN are rather appealing. Another Ag mine acquisition would be a dream!

    Their Challenger project is the only dampener!

    DYOR.


    Regards,

    Bellinvest
     
  7. SilverSanchez

    SilverSanchez Active Member

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    I really like this company as well, but the management has recently changed, and so I don't know the new guys. So it is a punt indeed. But the projects are great in my opinion. They did pay a lot for them, but there is obviously the gold upside in Chile (electricity will be an issue needing watch though)
     
  8. finicky

    finicky Well-Known Member Silver Stacker

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    I don't know whats going on with this as seems paradoxical. You have unprecedented high daily volume on two days late this month. That volume looks positive in that close on each day ended higher than close on prior day - hence black volume bars.
    Yet most of this volume appears to be coming from selling of KCN by Van Eck (the administrators of the junior gold miners etf - GDXJ)

    Candlesticks showing for those days are weird.

    Van Eck Corp, the administrators of the junior gold miners etf (GDXJ)
    Notice dated 22 Dec that ownership of KCN by GDXJ dropped from 13.41% to 12.21%
    Notice dated 23 Dec that ownership of KCN by GDXJ dropped from 12.21% to 7.28%

    KCN 3 mth Dly
    [imgz=http://forums.silverstackers.com/uploads/1893_kcn_3_mth_dly_dec_29.gif][​IMG][/imgz]
     
  9. SilverSanchez

    SilverSanchez Active Member

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    Those two high volume candlesticks are reversal signals (short term) they represent a transition from selling pressure to buying pressure. It may or may not have been van eck, but could have been people following van eck's lead. regardless the inverted hammer candlestick pierced the down trend meaning a break to the upside is more likely in the short term.

    So a re-test of 70c is the first hurdle, if it breaks then a retest of the next high 75c
    61 to 75 = +22% a nice profit
    61 to 70 = +14% a modest profit

    Van Eck is irrelevant for a few different reasons short term
     
  10. smk762

    smk762 Active Member Silver Stacker

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    Glad I cashed in my shares on this yesterday. Not much of a profit after brokerage, but better than the anticipated loss.
     
  11. SilverSanchez

    SilverSanchez Active Member

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    thai corruption - they refuse to pay bribes to the government
    They have done this before - constantly inspecting (slowly mind you)
    Im probably more than a bit boned
     
  12. Caput Lupinum

    Caput Lupinum Active Member Silver Stacker

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    Sounds about right. They need their "tea money"
     
  13. SilverSanchez

    SilverSanchez Active Member

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    from the Motley fool article

    What now?

    Local and international media is reporting that the company has informed workers and shut the mine, however the company is yet to release a formal statement at the time of writing.

    Kingsgate Executive Chairman Ross Smyth-Kirk is quoted saying that: "We are shocked and amazed at the temporary suspension order at the Chatree Mining Complex, situated in central Thailand which is internationally recognised as one of the safest gold mines in the world"

    There are 6,000 residents living in the vicinity of the mine, however there may be something else going on. My Smyth-Kirk noted that arsenic and manganese are not or have ever been used or stored at the Chatree Mining operation.

    me - could also be socialists/enviro-nazis/a chinese company trying to stage a smear campaign to bankrupt/hostile takeover etc
    Same sort of thing happened to Lynas Corp last year

    Either way I think its bogus - a 30 day shutdown is a massive(!) money drain as well as loss of income
    Im not a happy camper - I bought a good size portion @ 0.61 to take profits soon - also have about $20k now in this company

    freakin painful
     
  14. finicky

    finicky Well-Known Member Silver Stacker

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    Gold mines aren't investable. This one appeared to have all the stellar international standards credentials, best practices par excellence and it still comes undone for investors. Personally I care little as only holding 2,000 but hope it works out.

    KINGSGATE CONSOLIDATED LTD
    KINGSGATE IS A HIGHLY SUCCESSFUL ASX LISTED GOLD COMPANY WITH SIGNIFICANT EXPERTISE IN GOLD EXPLORATION, DEVELOPMENT AND MINING, USING WORLD'S BEST PRACTICE FOR SAFE, ENVIRONMENTAL AND SOCIALLY RESPONSIBLE OPERATIONS.

    http://kingsgateconsolidated.com.au/portfolio-item/chatree-sustainability/
     
  15. SilverSanchez

    SilverSanchez Active Member

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    Shhh..... finicky not helpful

    Timing, important for investing and not being a jerk ;)
     
  16. smk762

    smk762 Active Member Silver Stacker

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  17. SilverSanchez

    SilverSanchez Active Member

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    They forgot to mention that Kingsgate don't store manganese or arsenic onsite
     
  18. bellinvest

    bellinvest New Member

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    Kingsgate have released their Quarterly Activities Report for December 2014. Within the report some positive news regarding their Chatree suspension;

    "At the request of the DPIM, additional testing has been undertaken in the last few weeks. Throughout this process, independent international and Thai scientific experts have concluded, once again, that the Chatree Mine is not the source of the slightly elevated arsenic and manganese in some of the local inhabitants.

    The results and conclusion of this report are to be presented to the Director General of DPIM early next week and we will await the Director General's response."

    The average gold price received was US$1,205/ounce and the Group All-in Sustaining Cash Cost was US$896/ounce for the quarter. Sitting on around $75m in cash and having Market Cap of only $177M... with the operations they have it's a shame they have taken this unfounded hit from some Thai group. Great business IMO.
     
  19. SilverSanchez

    SilverSanchez Active Member

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    I think the villagers and their 'advisors' have gold fever, the symptoms are very similar
     
  20. SilverSanchez

    SilverSanchez Active Member

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    Kingsgate have survived through a lot in their time, very experienced company
     

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