Loading ...KGC up 1/2%, BTG up 1.5%
I don’t have a full rundown on KGC other than headlines.
BTG had quite a bit more info. Looks like their AISC was around $1350 on average on their mines. They produce around 900K gold oz. a year. Pay a dividend of $.16 a year or around 6%. They are sitting on $568M in cash and have a $700M credit line that is untapped.
Why are they so cheap?
Here’s something that bothers me that they provided no detail about. The show they received $500M in “prepaid” gold sales, but do not list the terms or sale price. First, why would they do that at all with an untapped credit line? Second, what was the price they sold per oz.? If I were an analyst, that’s what I’d like to know, especially given that their shares have dramatically underperformed. It doesn’t smell right. Somehow, I suspect that the “prepaid” buyer is getting a deal at the expense of shareholders, hence the underperformance. Why would they do that? Who are they providing that gold to? They are in effect hedging.
They should be a cash cow and the share price should be much, much higher.
The other thing is that they have 1.3B shares outstanding. Why aren’t they buying back shares?
Is there a single decent and well managed miner out there?