KCN - Kingsgate Consolidated

[UMike]

From $4.24 on the 8/1/07 to $3.47 yesterday, back to a close of $3.90 today

Anyone got some good info on this unpredictable stock?

 

[speves]

Wish I could help Umike this one is puzzling. The SP has been falling steadily at the lack of response from the Thai "Governments" granting the Chatree North Lease which is kinda critical to KCNs future.

I can't figure out what has sparked todays rise. At these prices (even with todays rise) KCN is undervalued, but few investors seem willing to buy in until the Chatre North lease is secured which is understandable...Once granted, the SP will likely head straight back to around the $5 mark fairly quickly.

Todays unusual price rise may be an indication of speculation on the granting of that lease??......... from my research it would appear that although approval of the Environmental Impact Statement is expected soon, leases are still a way off.

 

[theasxgorilla]

Boardroom radio interview with the CEO...

http://www.acnnewswire.net/press/en/34929/Boardroomradio.html

Beats reading! Sit back and listen

 

[speves]

Thanks mogilla...guess that explains the rise. The CEO certainly puts a positive spin on things.

 

[UMike]

I certainly regret selling this stock today (bought FUN and PPX) and hope to get back in if the circumstances permit.

 

[theasxgorilla]

Thanks mogilla...guess that explains the rise. The CEO certainly puts a positive spin on things.

I've heard him speaking about the company on a number of occasions. It's his job so you expect him to be good at it...but on all occasions he has come across as very, very good at it.

Consider this recording of the AGM back in November 06, where from memory he talks about the rather large "short-interest" and possible market manipulation of his company's share price by hedge funds.

http://www.acnnewswire.net/press/en/34011/Boardroomradio.html

http://www.smh.com.au/news/cbd/asx-censors-criticism-aimed-at-it/2006/11/16/1163266711928.html

 

[rawmaterial]

Highest ASX200 gain today moved up 14.47% on the receive of Environmental Approval for Chatree North Mining Leases.

Does someone here have an idea of how long it usually take for such Mining lease to be granted once the compnay received the environmental approval?

Take PDN for example, Environmental Approval on 03/04/2007 and Mining lease was granted on 10/04/2007. But we are not really comparing apple to apple here since one is a gold mine in Thailand and the other is yellowcake in Malawi.

Would anyone know of a similar situation that have happened in the pass so we can have a better idea of the timeframe?

 

[UMike]

I certainly regret selling this stock today (bought FUN and PPX) and hope to get back in if the circumstances permit.

Well ......

Back in at $5.

Westpac BT has a really good write up about it and Gold is the flavor of the moment.

 

[michael_selway]

Well ......

Back in at $5.

Westpac BT has a really good write up about it and Gold is the flavor of the moment.

Its a great company this, but some risk

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS -22.2 24.7 63.0 73.8
DPS 0.0 14.0 23.0 42.5

thx

MS

 

[refined silver]

Ouch!! What happened today. A 20% drop and then a trading halt???

(Don't own any - just watching)

 

[michael_selway]

Ouch!! What happened today. A 20% drop and then a trading halt???

(Don't own any - just watching)

Hm yep! Not too much factual detail atm

thx

MS

BANGKOK (Dow Jones)--Thailand has suspended 53 applications from a unit of Kingsgate Consolidated Ltd. (KCN.AU) for gold exploration and production licenses in Phichit and Phetchabun provinces, the Bangkok Post reported Monday quoting a senior government official.

Primary Industries & Mines Department director-general Anusorn Nuangpolmark said a total of 60 applications in the two provinces have been suspended so in-depth environmental impact studies can be carried out, according to the report.

Kingsgate has been carrying out commercial gold production in Thailand since 2002 and is seeking more gold reserves to support production, the newspaper said.

Anusorn said the government is responding to concerns from communities and activists that the environment impact of gold mining could outweigh the economic benefits, the report said.

"Media Release - 3 December 2007
KINGSGATE CALLS FOR CLARIFICATION ON LEASE APPLICATIONS
Kingsgate (ASX:KCN), and its Thai subsidiary Akara Mining Limited, have received Thai media reports
alleging the suspension of applications for gold exploration and production licences by the Thai government.
Kingsgate and Akara are obtaining clarification from the Thai Mines Department (DPIM).
Kingsgate and Akara are proud of their record of being the safest gold mine in the world, after six years of
operation with no environmental incidents.
Recently the company was awarded Social Accountability SA8000 - the most credible example of treating
people fairly and equitably. It was the first mining company in the world to achieve this.
The Chairman of Kingsgate, Mr Ross Smyth-Kirk, said the company had overwhelming community support
and has set the benchmark for the most rigid environmental practices of any mining company in the region.
“We are surprised by any claims to the contrary”, he said. “The company has consistently delivered social
and economic benefits for both local communities and the Kingdom of Thailand.”
This year, His Excellency the Thai Prime Minister Surayud Chulanont personally presented the company with
its fifth consecutive Thai Prime Minister’s Best Practice Award for Employee Welfare and Labour Relations.
This is in addition to the Thai AustCham’s award for Environmental Excellence 2006 and the Thai National
Health & Safety and Environment Award 2005.
The company adheres to world’s best practice in environmental, social, community and labour relations and
also has international ISO standards for Environment ISO14001, Health & Safety OHSAS18001, Quality
ISO9001, and the Thai Labour Standard TLS8001.
The company currently has 52 exploration licences (SPL’s) and five mining leases granted (ML’s). A further
nine Mining Lease Applications are pending. These are located immediately to the north of the Chatree mine
and have an approved Environmental Impact Assessment (EIA), which was granted in April 2007 after a
rigorous two year process. Forty-four exploration licences (SPLA’s) are pending final approval by the Minister
of Industry.
Elections in Thailand are being held on 23 December 2007.
Media Enquiries: Suzanne Blake 0414 233 500
Investor Enquiries: Stephen Promnitz +61 419 194 918"

 

[juw177]

Yes, and just when I post a thread about why I should set stop losses to protect from breakdowns like this, it happens to me again.

What are the chances that it will be a hoax and the people that work in the culprit media had been buying up? What a ride that would be. But that is just wishful thinking.

 

[So_Cynical]

KCN comes outa the trading Halt tomorrow (i think) and im wondering what
interested members think will happen.

How low can KCN go :dunno:

Is there any real risk the a new Thai Govt could pull the plug on
there operations...or make it so difficult for them to operate that
KCN are forced to bail out?

Or will tomorrow be just a great buying opportunity?

 

[ekoment]

Personally I do not know which way the decision will go & how long this will take. Have been trying to get an update from the online newspaper sites today regarding the cabinet meeting to be held today that is supposed to resolve this. Attached site is worth a look.

http://www.nationmultimedia.com/index.php

I have had my KCN for quite a while and was prepared to wait for the lease approvals at the slow pace - as I was pre-warned. -- But the turn around of already approved decisions now make it a concern.
With the senior management supposedly heading to Thailand to take up discussions, I guess that the decision may take some time to sort out.

I just hope that common sense will prevail in all of this and the good things that Kingsgate have been doing at this site (which are quite commendable), will be seen as an economic benefit for the Thai people and the future elected goverment.

Yes - I will be watching the monitor tomorrow with hope of a favourable result and SP rise.

 

[So_Cynical]

The election is on the 23 Dec so i doubt that any decisions will be made
by this govt...what will the new govts agenda be?

I would think business as usual...but u never know.

 

[ekoment]

Just came across this article on the Bangkok Independent Newspaper website.
http://www.nationmultimedia.com/2007/12/04/business/business_30058227.php
Now we know ?!?

GOLD MINING
Gold mining exploration licenses put on hold
The Cabinet yesterday agreed to postpone the consideration on new gold exploration licenses until the Office of National Economic and Social Development Board (NESDB) completes the revision of the government policy for this industry.

The move will affect five firms, which are Akara Mining, Richbhumi Mining, Amanta, Arawan Mining, and Paron Mining which have submitted exploration licenses for 56 gold fields. The exploration is expected to require an investment of Bt10 billion per field.

Of total, Akara Mining applies for 44 gold fields in Phetchabun, 2 fields in Chanthaburi belong to Richbhumi, Amunta applied for 2 fields in Suratthani, Arawan Mining for 2 fields in Chanthaburi and 2 fields in Rayong, and Paron Mining for 4 fields in Chanthaburi province.

Deputy Prime Minister and Industry Minister Kosit Panpiemras said the NESDB was assigned to review and revise the government policy for gold mining, which has been in use since 1987.

- The Nation
Chalida Ekvitthayavechnukul

 

[So_Cynical]

Gold mining exploration licenses put on hold
The Cabinet

There will be a new Cabinet after the 23rd December...or does it
work differently in Thailand.

Im thinking...New Cabinet new decision. :dunno:

http://www.cbsnews.com/stories/2006/10/09/ap/world/mainD8KL8UMO0.shtml

BANGKOK, Thailand, Oct. 9, 2006
(AP) Thailand's king swore in post-coup Cabinet ministers on Monday, urging them to work
honestly as the country tries to move beyond its political crisis.

The top jobs of the interim government _ announced early in the day in a television broadcast while most Thais slept _ were given to economists, high-profile civil servants and two retired military officers, all of whom are expected to govern until elections in October 2007./end

So looks like whoever wins this cabinet is history...there not politicians.

 

[refined silver]

Interesting. A great buying opportunity, or just more of the hassles in working in these countries?

The Thai royalty hike recently was a jolt. 20% is the top rate - that's absolutely massive.

Without the political risk its a superb company with great projects and potential. With the political risks.....??????? Who knows.

 

[So_Cynical]

The Thai royalty mite get rescinded as well...im sure KCN execs would
be arguing hard about that.

ill be watching KCN very closely tomorrow...i do love a bargain.

 

[So_Cynical]

Suspension from Official Quotation

Im thinking that just cant be good...i imagine its a bit like
hitting the panic button. :dunno:

Do company's Suspend trading for good news???? or is it
just the same as a halt...can be good or bad news?