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Top Gainer: Kingsgate (KCN)

 Closing price  $8.40
 Change  +0.57
 % change  +7.3%

 

Broker calls

Eagle Research (ERA) – Buy, price target $14.00

Well off its all-time high of $12.15 reached in October last year, gold and silver miner Kingsgate Consolidated (KCN) jumped 7.3% on Thursday as gold prices soared above $1,800 – yet another record high. With volatility rocking global markets gold doesn’t seem to be stopping anytime soon and Aussie gold companies are starting to reap the rewards.

When it comes to views on the gold price, there seem to be very few bears out there. Central banks around the world are buying up big as the world struggles to claw its way out of the ongoing economic slowdown and investors appear to be following suit.

Having listed as an explorer back in the late 1980s, KCN was in the doldrums for many years until a gold discovery in Thailand made investors sit up and take notice in the mid 90’s. The Chatree gold mine has now been producing for almost a decade, with an extension to the original mine extending the mine life for a further 7-10 years.

KCN is now looking to expand aggressively with a further extension to the Chatree mine, as well as the acquisition of new projects such as the recently acquired Bowdens Silver Project that has a silver resource of 97Moz and in ground value of $5 billion.

Kingsgate’s Managing Director and CEO Gavin Thomas says that there is a strong upside potential to the project that has potential prodution by early 2014. “This exciting opportunity enables Kingsgate to acquire an advanced development project with exploration and development upside,” said Thomas. “Bowdens is ideally suited to the company’s core strengths of identifying quality projects and bringing them into production cost effectively.” You can read Gavin Thomas’s presentation at the Diggers & Dealers conference here.

Based on Thomson Reuters data, nine analysts have a buy on KCN, with five have holds and just one sell. 

 

Stock code: KCN

Charts: Kingsgate Consolidated Limited

More news: Kingsgate Consolidated Limited

Investor Centre: Kingsgate Consolidated Limited

 

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