Kingsgate is a legitimate gold producer with the recently strong gold price tailwind, upgraded guidance, and a forward P/E that looks cheap relative to peers, all helping the $1.6bn stock gain promotion to the ASX200. The key risks are Thai jurisdictional exposure (it’s been burned before), cost management, and the Chile project timeline. Revenue is estimated to be $631mn in FY26, and the stock is already starting to pay a small dividend.
KCN’s investment case is anchored by the Chatree Gold Mine in Thailand, a cash-generating operation that is currently delivering well. Beyond Chatree, the company has additional upside through its wholly owned Nueva Esperanza gold-silver development project in Chile. KCN screens as one of the cheapest gold producers on the ASX, particularly on a forward basis. It trades at a meaningful discount to sector heavyweights like NST and EVN, but some of the discount is definitely warranted, as we said, due to the Thai jurisdictional risk (the government shut Chatree down once before) and the fact it’s a single-asset producer at this stage.
- We like KCN from a value perspective, although it’s unlikely to close the gap to the larger players.
Kingsgate is a legitimate gold producer with the recently strong gold price tailwind, upgraded guidance, and a forward P/E that looks cheap relative to peers, all helping the $1.6bn stock gain promotion to the ASX200. The key risks are Thai jurisdictional exposure (it’s been burned before), cost management, and the Chile project timeline. Revenue is estimated to be $631mn in FY26, and the stock is already starting to pay a small dividend.
KCN’s investment case is anchored by the Chatree Gold Mine in Thailand, a cash-generating operation that is currently delivering well. Beyond Chatree, the company has additional upside through its wholly owned Nueva Esperanza gold-silver development project in Chile. KCN screens as one of the cheapest gold producers on the ASX, particularly on a forward basis. It trades at a meaningful discount to sector heavyweights like NST and EVN, but some of the discount is definitely warranted, as we said, due to the Thai jurisdictional risk (the government shut Chatree down once before) and the fact it’s a single-asset producer at this stage.
- We like KCN from a value perspective, although it’s unlikely to close the gap to the larger players.
MM is cautiously bullish towards KCN around $6
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