Loading ...When jurisdiction does matter………
KCN.AX was a AU$12 stock in 2010, and followed the bear path to $0.41, until suspended in recent months. Below explains why Kingsgate hasn’t kick started with the rest in 2016. No idea what’s happening at Chatree, but this does exemplify risks inherent in one-mine companies. Sad news for stock holders.
Key Points:
” – On 10 May 2016, the Thai Minister for Industry decided, following a Cabinet meeting, that the Metallurgical Licence for the Chatree Gold Mine would be extended only until the end of 2016, rather than for a further three to five year period as was expected.
– As the Metallurgical Licence is critical to the continued operation of the Chatree Gold Mine, all operations must cease by 31 December 2016.
– Due to ongoing uncertainty with respect to the remaining tenure of the Chatree Gold Mine, Kingsgate shares remain voluntarily suspended from trading.
– There is the potential for a substantial impairment to the carrying value of the Chatree Gold Mine, subject to a final review and audit that will be in the order of US$175 million, which highlights the magnitude of the impact of the Thai Government’s decision to prematurely close the mine.
Thank you for this reminder of the risks involved.
What I’d like to know is to what degree the PM bear thesis has changed. This week is shaping up as a POR that PM’s are now in a bull market with lot’s of gentlemenly types sprinting toward the train.
PORs come in Phase II. We are still in Phase I of this bull. It is surprising to me how long it takes to awaken the investing public that there is a bull. One can do an informal study of asking those of whom you know who are investors, family members with 401ks etc if they are aware the major PM stocks are up 150% just this year. You wont find any that know this. The POR lies well down the road still.