OTCPK:HCGI - Post by User
Comment by
JRaffleson Feb 04, 2017 1:52pm
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Post# 25799934
RE:I would think $20 is on the horizon
RE:I would think $20 is on the horizon
Agreed ......
when the Sep 2016 merger presentation report was issued, it gave Price /2017E Cash Flow for the following companies as follows:-
KL 6.1x
RIC 11.6x
Detour 9.4x
it seems quite plausible that KL could be re rated alongside RIC at 11.6x cash flow. This would produce the $20 SP for KL.
However, the board's policy has been to promote development of the twin hi-grade macassa and fosterville mines and mothball the low marging mines. This would produce a company with a very much reduced AISC and a high ounce producer. This seemed to be an accretative prospect that was overlooked when the merger implications were being aired.
There seems to be every likelihood that KL's metrics in 2017 will therefore boost SP growth prospects far beyond any of the comparative mines in the merger presentation. My guess / hope would be $25 sometime in 2017.