Kingsgate Bull Likes Low Costs, Strengthening Cash Generation

Dow Jones
11小時前

0254 GMT - Kingsgate shares have lagged rival gold stocks, likely because of 4Q plant issues that resulted in lower throughput at Chatree, MA Moelis says. But MA is constructive on the stock, which it says looks relatively attractive on forecast free cash flow yields and EV/Ebitda multiples. "We think the slightly lower EV/Ebitda multiples compared with peers reflect limited near-term growth visibility and exposure to jurisdiction risk," MA says. "However, partly offsetting these risks is a competitive cost position--with the lower cost base providing margin resilience should gold price soften--and a strengthening cash-generation profile." It has a buy rating and A$6.45/share target on Kingsgate. The next catalysts include FY 2027 guidance and a development decision on Nueva Esperanza, it says. Shares are down 0.4% at A$5.54.

 

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