KCN - Kingsgate Consolidated

[Steamy]

 

[Steamy]

 

[Steamy]

This is the booklet that the current chairman want KCN holders not to see.

 

[greggles]

Breakout for KCN today following news that it has settled proceedings against its Political Risk Insurers by entering into a legally binding Heads of Agreement (HOA).

Kingsgate had a Political Risk Insurance Policy in place at the time it is alleged that the Government of Thailand illegally expropriated its Chatree Gold Mine in May 2016. The HOA provides for a settlement to Kingsgate worth more than A$82 million.

A great result for KCN and its shareholders. KCN has gapped up this morning and is currently trading at 26c, up a whopping 73.33%.

 

[barney]

Certainly good news for Kingsgate. First $55 million by mid April if all goes to plan. They will sit a lot more comfortable when the zeros are on the balance sheet

 

[sptrawler]

Bought into these on Monday, from what I have read the Thai Gov may be considering re opening the Chatree gold mine, that they closed in 2017. Also Kingsgate is sueing the Thai Government for the closure.

https://www.asx.com.au/asxpdf/20190904/pdf/4486x8g06bvn3r.pdf

 

[barney]

Bought into these on Monday

So you are already up 10% Homer … excellent

Assuming Commsec is up to date, they have a market cap of around $90 million and about $50 million in cash and Gold .... no wonder the SP is going up

 

[finicky]

Arbitration hearing close now - starts Monday. A decision will take much longer, but there is a chance of an out of court settlement. Daily chart looks nice.
Disclosure: holder

From KCN Quarterly ending Dec 31

The arbitral hearings under the Thailand - Australia Free Trade Agreement (that relate to the Thai Government’s premature closure of the Chatree Gold Mine in 2016) - A joint decision was made to reschedule the hearings.

 Following this decision, the arbitral hearings were rescheduled for 3 to 12 February 2020, in Singapore.

 Kingsgate is well prepared for the hearings and the Kingsgate Board continues to consider the Company has excellent prospects for a successful outcome.

 Kingsgate remains open to seeking a negotiated settlement of the matter with the Thai Government

1 year daily

 

[sptrawler]

Chose this in the Feb stock picking comp, on the hope there is an early settlement.

 

[finicky]

Kingsgate has broken out of a recent downtrend and is at 3 month high

Held

1 Year Daily

 

[sptrawler]

Has there been a result from the Thai court hearing?
I sold out a while back, small profit, but thought with the virus this could end up a protracted decision.

 

[finicky]

Hell no, no decision - it'll moonshot or collapse at a decision.
I see it as protected from Wuhan Flu, except for court delay, as obviously not a production related stock.
Interesting bit of chart movement though. I was thinking about booking a big loss in Dacian (DCN) and using tbe charred remnants to add to my KCN position

 

[UMike]

There'd be Speculation about something though?

 

[finicky]

There'd be Speculation about something though?

Looks like it mate, quite high volume for KCN, closed on its high. Might be just the technical break through a resistance level but looks too strong for that.

 

[Garpal Gumnut]

Kingsgate has broken out of a recent downtrend and is at 3 month high

Held

1 Year Daily
View attachment 106050

It looks as if an EW 3 is in the making if it can keep the energy going on the chart.

gg

 

[finicky]

Seems worth a comment, daily chart flagged and today broke out on high volume for this stock - closed on its high.
My idle notions to explain it are an increase in interest because of the growing conceptual inground value of the silver at Nueva Esperanza project in Chile. Then all those sitting on the sidelines planning to pile in before an anticipated massive court win over the Kingdom of Thailand in the confiscated Chatree mine dispute have had their hand forced by the silverbugs, haha

1 year Daily

 

[finicky]

Posted yesterday in the potential breakouts thread. Seems worth reposting here on the KCN thread as it is up again today on an obviously bad day generally - who knows, someone might still see speculative potential here even after recent rises - I won't be adding to my position. Am including a daily chart plus an all data Qtrly chart
To remind:
Has a court of international commercial disputes decision pending against Thai government.
Has an advanced Chilean silver project (Nueva Esperanza)
Held

 

[UMike]

Even if they win the dispute.
Can the Thai Govt be compelled to pay?

 

[finicky]

I don't know but sense from discussion elsewhere by some astute people - almost certainly.

My notions:
Thai govt is bound by TAFTA (Thai Australia Free Trade Agreement). The Australian Govt will come to Kingsgate's aid if Thailand defaults on a court order.
The court resolving the dispute is the top international court, an organ of the world bank
They have assets abroad that are confiscatable on default.
They need to attract foreign investors and have a risk rating they wouldn't want to get worse.
They probably want the mine to resume operation themselves - there are rich Thais in the Thai kleptocracy who will get a stake on resumption of operation and the mine's worth jobs and taxes when the Thai economy and tourism has been hit with covid.

 

[finicky]

Closed on its high, strong volume. A gap! Is it an 'ordinary' gap or a 'breakaway' gap?
I'll plump for 'breakaway', they're said to have a lower probability of filling. Next up, a 'running' gap
This is better than t.v any day.