Kingsgate Poised to Gain from Strong Gold Prices After Mill Restored

Dow Jones
09/07

0432 GMT - The return to full processing capacity at Kingsgate's Chatree gold mine following a mill outage "is an important milestone and removes a key near-term operational overhang," says MA Moelis Australia. The miner expects to update investors on FY27 guidance by the end of September. MA says its own FY27 estimates already incorporate a softer 1Q to reflect the disruption and remediation works. It forecasts FY27 gold output of roughly 93,000 oz, generating about A$352 million of Ebitda. "With full nameplate processing capacity restored, KCN is well positioned to capture the benefit of a strong gold-price environment and a competitive cost base," MA says. It has a buy rating and target price of 6.45 Australian dollars a share on Kingsgate. Shares are down 1.1% at A$5.47.

 

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