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KGL - KGL Resources

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Re: KGL - Kentor Gold

Hi Sam,

I'm not sure about that extension you mention, but I grabbed the following for the Kentor website:

The Savoyardy Gold Project is located approximately 145km southeast of the city of Osh in the Kyrgyz Republic. The project comprises a single exploration licence (Au-87-04) covering 124km².

So, it seems Sam, that unless Kentor has not updated their website, then that's a "no" to your question.
 
Re: KGL - Kentor Gold

sam76 said:
I had a bit of a look and found this...

The Savoyardy project is adjacent to and along strike from Majestic Gold Corporation’s Sawayerdun Project in the Xinjiang Province of China, which has a recently announced resource of 1.5 million ounces of gold.

http://www.miningnews.net/storyview.asp?storyid=472263&sectionsource=r5

It bodes well for further upgrades.

cheers,
Click to expand...

Yes, Sam, that is why I'm in for the longer haul. Though, I feel some investors don't realize that just because Kentor is hoping to go into production early next year, that it does not mean that their exploration at Savoyardy is finished. Quote the opposite, in that, the funds recovered from early production will fund further exploration, and should minimize further need for capital raising.
 
Re: KGL - Kentor Gold

Having a nice little run this morning.

Pre-feas to be completed by the end of April.

90 odd million shares on issue
 
Re: KGL - Kentor Gold

Kentor having a nice will run or late, and still no news on what the pre-feasibily study has to offer. Kentor is also considering other business prospects which have not got to any stage for final consideration. Fingers are crossed, though, that it will be viewed by shareholders and potential shareholders as value adding.

Kentor has always disclosed that they will look for and consider business prospects, even out of their normal field of gold exploration. So, seems there is some interest in just what this new opportunity is, or is it just punts waiting on the pre-feasibility study to be released. The study was expected to be released late April. Now it is May, so expecting it any day now.
 
Re: KGL - Kentor Gold

:) Just for your information... I recently got out of Kentor Gold at 4.5 cents per share. It was a small profit for me, and I will now sit back and watch for my next financial decision.

I do believe Kentor does offer long term hope, but I will pick my time to move in and out.
 
Re: KGL - Kentor Gold

Hi Holy Roly

I'm holding at 7c, bought at 4.7c just after you sold - do you want to advise what other stocks you've offloaded recently :D. Possibly time to get back in as appears just from their announcements KGL have a lot of potential over the next 18 months as long as Kyrgyz Republic stays out of trouble. Sounds like an interesting place to visit sometime and hoping KGL can fund the trip.
 
Re: KGL - Kentor Gold

This is one little speccy that I've made a bit of coin on recently, bought in at 9.9c after breaking through 10c and then retracing successfully to test support. Their Andash project in Kyrgz has been derisked somewhat with the government letting them retain ownership, and with some good results coming out of savoyardy and andash this has been re-rated a little. It's riding high on the back of the gold price - but how long this lasts I'm not really sure. As they grind on towards production next year will they get re-rated further or is there still a heavy discount on this stock given it's mines locations? What do you guys think?
I sold about a third of my holdings at 14.5c recently, so I have 2/3 left and good to see it's still going strong. Perhaps a retrace to 14.5c is needed before going further.
 
Re: KGL - Kentor Gold

Any other thoughts on this one with the recent announcement of the $28m capital raising? Surely a good thing for the co.
Any thoughts if a good buy at $0.145?
 
Re: KGL - Kentor Gold

JPC_ASX said:
Any other thoughts on this one with the recent announcement of the $28m capital raising? Surely a good thing for the co.
Any thoughts if a good buy at $0.145?
Click to expand...

Sounds like a bad bet imo, theres a few hundred million shares issued at 13c, which can be easily sold on mkt for a quick 10% profit
 
Re: KGL - Kentor Gold

skyQuake said:
Sounds like a bad bet imo, theres a few hundred million shares issued at 13c, which can be easily sold on mkt for a quick 10% profit
Click to expand...

sure. what about after these stocks are dumped? looks a good prospect over the long term. any opinion on this?
 
Re: KGL - Kentor Gold

JPC_ASX said:
sure. what about after these stocks are dumped? looks a good prospect over the long term. any opinion on this?
Click to expand...

From what I've gathered about the existing and potential resources of KGL and the other Aussie gold miner in Kyrgyzstan, being Manas MSR, they have bright futures and are being discounted somewhat because people can't pronounce Kyrgyzstan, let alone know where it is.

The closer these guys get to production and the longer Kyryzstan doesn't spook people, they should do OK. I recall their production costs were moderate so don't think they are so dependant on current gold prices but you should check it out yourself.
 
Re: KGL - Kentor Gold

Up 8.9% today to almost $1 a share, and from memory went up 6% last Friday.....dare we say good times ahead?
 
Re: KGL - Kentor Gold

Ironhalo said:
Up 8.9% today to almost $1 a share, and from memory went up 6% last Friday.....dare we say good times ahead?
Click to expand...

Ironhalo I`m not sure what country or planet for that matter you reside in but KGL had an 8.89% rise from AUD 0.09c. to 0.098c. That seems far removed the $1 a share you quoted. That inaccuracy can tend to put people off the track and proves that whatever your source it is highly inaccurate and it`s certainly not Paul the octopus. With due respects.:p:

I believe as SC KGL has potential (I do not hold), but for me there are others I prefer. See competition
 
Re: KGL - Kentor Gold

Buckfont said:
Ironhalo I`m not sure what country or planet for that matter you reside in but KGL had an 8.89% rise from AUD 0.09c. to 0.098c. That seems far removed the $1 a share you quoted. That inaccuracy can tend to put people off the track and proves that whatever your source it is highly inaccurate and it`s certainly not Paul the octopus. With due respects.:p:

I believe as SC KGL has potential (I do not hold), but for me there are others I prefer. See competition
Click to expand...

Looks to me like a good potential breakout though. From a charting perspective a confirmation rise would interest me in a punt. I usually wait till 2pm when excitement has run its course and commitment remains.
 
Re: KGL - Kentor Gold

Oops, sorry misread the rise and only looked at the %.

Yeah point taken, but with the Kyrgys gov't starting to settle down, there is potential for a breakout if the gold mine project gets on track.
 
Re: KGL - Kentor Gold

Its always the dilemma for junior explorers wanting to make the transition to producer.
Too many times we have seen companies embark on highly dilutive capital raisings at discounted prices to provide funding. Over the years I have seen many promising projects either end up not proceeding or proceeding with massive dilution where existing shareholders miss out on major upside.
How will KGL fund the $96M capital requirement to build the Andash plant?
Well, obviously no bank on this planet is going to 100% debt fund a project in the Kyrgyz Republic despite the payback period of less than one year.
So, it's been mentioned more than once that it will be a mixture of debt and equity. 50/50 debt/equity split has also been mentioned. That's seems fine so long as the $48M equity component is structured to MINIMISE dilution rather than maximise it.
Personally, I always like to see a component whereby a convertible note/s is/are used with a conversion price HIGHER than the prevailing share price. Isn't that better than raising capital at a DISCOUNT to the prevailing price?
To issue convertible notes repayable years down the track at higher prices than the current share price is normally only achieved when the project economics are extremely robust. That's the only way to attract instos/brokers with firepower to the story. They need to see the upside and it has to be significant. Normally a nice multiple of the current price.
I also like to see some sort of shareholder equity component that gives current shareholders a crack at some cheap shares via a rights issue or SPP (rights issue is fairer as it's done on a proportional holding basis).
The future for the share price of KGL is not only linked to the success or otherwise of the Andash project but just as important is how the debt/equity funding is structured.
Time will tell if dilution is minimised. I have faith in this company's management and I like the fact that some strong brokers are already supporting the stock.
The project economics are very robust and the exploration upside is also significant. One thing the uprising has provided that is positive is asset prices are very cheap. It's opened up many avenues for KGL within the Kyrgyz Republic. Aktash is one example of a very good asset picked up by KGL for a song. It will provide even higher grade ore for the Andash processing plant which will add extra years of mine life to the project and increase the NPV even further. I'm confident there will be others.

The following is the table for NPV of the Andash Zone 1 project for readers' reference.

http://www.asx.com.au/asxpdf/20100719/pdf/31rd0py3tn4rfx.pdf

Page 16 has the NPV table.

At current gold/copper prices, the NPV is $US220M or 38c per share.
Significantly, the NPV increases by 56% by adding an additional 6M tonnes of ore over two years. That's significant because that's what the recent Aktash acquisition will provide.
We are then looking at a NPV of US$312M which values KGL's 90% stake at US$281M or AUD$300M (52c per KGL).
 
Re: KGL - Kentor Gold

Update: NPV is now US$240M (43c per KGL share) on current gold/copper prices.

Bank financing due in one to two weeks.

Equity financing by end of 2010.

Looking bullish fundamentally and technically. A breakout has occurred. Short term target 20c. Two year target ($500M market cap).
 
Re: KGL - Kentor Gold

$96M capital cost for the processing plant will probably consist of $50M bank debt and $46M equity. I'd like to see circa $25M in a convertible note and a rights issue for circa $21M.

If we assume an extra 250M shares on issue post capital raisings, KGL will have 826M shares on issue.
With a NPV of AUD$250M, that would give a current NPV of 30c per share fully diluted.
Looks a compelling case for a strong buy IMO at current prices, trading at a 53% discount to the fully diluted NPV.
 
Re: KGL - Kentor Gold

Bank finance of circa US$50M must be close to being signed off. Gold and copper continue their upward climb and at current prices, the bank debt would be paid off in less than eight months.
Once the Aktash (recent acquisition) higher grade ore is processed through the Andash plant, KGL will effectively be producing 100,000 oz of gold per annum at a cash cost of $29 /oz and they will be debt free after 8 month's production post commissioning.

What's a company with no debt and generating $100M+ per annum in free cash flow worth? 1Bn?

The big question is how much dilution will be necessary to raise the $50M equity portion assuming the debt is finalised shortly.
 

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