Is not only due to poor sentiment towards Commodities at the present time and worries about aggregate demand from China for the rest of 2015; it is also a reflection of falling Copper spot prices in the past 2/3 weeks although ; it was actually up this morning.
Nonetheless; the investment community will wake up when the Resource Upgrade is announced at some point end of August/Early September hopefully as Market Cap. of £6m does not reflect the intrinsic NAV of KSK let alone other elements.
In essence; the current valuation offers little down side risk in terms of risk/reward on a 12 months time horizon IMHO.
That the fall was peculiar to this, look at the number of mining companies which fell today, couple that with the Chinese Market falls and slowing down of demand for minerals. Also add the herd mentality.
Tony Manini's Aussie baritone oozes a "trust me" gravitas. The interviewer didn't bowl him anything unplayable. TM batted all questions away with elegant cover drives through to the boundary. In short: Jelai for sale, Beutong for later, KSK for now. Nicely nuanced coded language too. Cash strapped? No, just needs to deal with "the capital component". Tenure problems at Beutong? No, just needs "de-risking". Etc. Anyway, not hunkering down for survival. On we go.
... is a good name. The CEO's latest message touches on all the right themes. It's all about execution over the next twelve months. The 2Q 2015 financials will show whether corporate costs are being contained. Beutong is all about securing tenure. Jelai - well who knows really what the prospects are? As for BK investors will have to await the results of the scoping study next year. Tigers Realm need to continually demonstrate and emphasise the ongoing commitment and determination of the management team especially as Tigers don't seem to be contributing cash. The reverse takeover was at the time perceived as a marriage of two cash strapped businesses. Nothing much has happened to contradict that view.
However some are predicting a turn around for gold in 2017. Maybe KLG should change their name back from ARS to KLG in 2017?
Really not sure about the prospects here now as a longer term hold, and maybe just a short term hold/trade when the overhang is clear and volume picks up again. Would expect some kind of action here before mid to late August with that resource upgrade coming. However, recently miners releasing decent results and getting trounced, so having to downgrade my forecasts here for the time being. However, KLG making all the right noises recently., just not being appreciated enough by the markets.
I was hoping for a re-bound or at least a pickup in copper demand and prices in the next 2-3 yrs. This article seems to suggest otherwise and perhaps another 5 yrs until copper rises above it's marginal cost. These kind of forecasts, along with recent markets may explain why KLG is failing to move up SP wise, apart from the recent placing which is creating an overhang. Have noticed on the last 2 RNS's that it's failing to attract interest at the moment. Will be interesting if KLG can turn things around late August/early September with their resources upgrade. Here is the link:
they should have changed their name a few weeks ago as gold is getting dumped. However, to be fair, this is as the RNS states, primarily a copper and NOT a gold share. Anyway, knew the name change was coming, but can't say I especially like the new name. But, it does reflect the company better than KLG. I too think ASR would have been better than ARS LOL
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