What happened with KL in the last two years. Why is the price not rising? In my opinion the company and his management did a great job. The only thing that happened is that the valuation of the stock became cheaper and cheaper.
Valuation KL
September 2019 :
share price 50 usd : 2 usd profit per share
P/E : 25
August 2020
share price 57 usd : 3,16 usd profit per share
P/E : 18
August 2021
share price 42,74 usd : 3,68 usd profit per share
P/E : 11,61
So you buy cheaper and you receive more value-profit for your money. Everybody knows this will not last forever. The price action from the last year is - was a gift for smart investors.
The real minimum P/E KL deserves is 20. In USD this gives a price of 73,6 dollar or 91,7 usd. This is a return of 72%.
Unless we have a market crass I'm convinced the gold price will rise seriiously between now/september and the end of the year. When the unwinding of the unallocated gold stops the price will rise dramatically. 1800 usd is the level used for unwinding their unallocated gold. This will stop sooner then you think.
I'm convinced for myself that a gold mania is underway. When the profit of KL goes x 2 based on a much higher gold price, a higher production with also a new acquisition in 2022 and a lower AISC and the P/E goes to 50 (MANIA) then we become a share price of 368 usd and 459 cad. Then it is maybe time to leave.