Re: KGL - Kentor Gold
Anyone got any thoughts on this? I've been holding this stock (on and off) for the past 2 or 3 years.
Seems they have been on a slide the last couple of days. I have been waiting for some kind of announcement about their project in Kyrgyzstan but nothing has come about yet. Any thoughts about that?
The other announcement around the Gabintha project isn't super profitable in comparison with other projects like the Andash one (IMO), but is only a small part of their strategy. Just keen to hear what others think of the prospects here??
Hi Dmorgz
There is no doubt that the Andash approval process has been delayed. We originally expected news in December, and then January. I do however believe the delays are more administrative, rather than project specific.
Firstly, with the change of Government, the new coalition has been reviewing the approvals process and appointing various ministers. This has taken time and meant that no official party personnel were available to attend the local "Kurulti".
Secondly, the Krygyz Rep is frozen over (like most of Europe/central Asia). They have been experiencing temps of -30 degrees.
Finally, there was apparently a wedding and funeral scheduled for the village last week and this week.
Now, although most of us probably wonder why they dont just sign on the dotted line I think we have to be mindful of the fact that the local village is essentially a "tribe" with thier own traditions, processes and procedures. They dont necessarily work to our westernised way of doing business.
I posted a week or so ago that the next four weeks is crucial and stand by that comment. I think we need to see some news within that period otherwise there could be some weakness in the SP.
In regard to Burnakura/Gabanthina yes stage 1 of the project is fairly rubbish, luckily the stage 2 feaso is due out in April and that should help ease some nerves. Even if Burnakura (stage 1) just covers admin/some exploration costs then at least that removes the need for any CR's in the near future.
The real potential of the project will be in extending mine life, adding the heap leach and processing the copper-gold concentrate from Gabanthina.
Finally, The consolidation period has resulted in rubbish volume and the stock being up and down like a yoyo. Give it another week or so and we should get a clearer picture on where the stock stands.