This report is an updated version of the report published on 22 April 2025 at 11:26 AM AEST.

Kingsgate Consolidated Limited (ASX: KCN) 

Kingsgate Consolidated Limited (ASX: KCN) is an Australian gold and silver producer, known for its Chatree Gold Mine in Thailand and the Nueva Esperanza Gold-Silver Project in Chile's Maricunga Belt. With extensive experience in gold exploration, development, and mining, Kingsgate is a key player in the Pacific Rim region. The company focuses on advancing its portfolio of high-quality, high-potential gold and silver assets.

Recommendation Rationale – SELL at AUD 1.750

• Overvalued Multiples: On a forward 12-month basis, the stock is trading at a P/E multiple of 5.5x vs industry (Metals & Mining) median of 3.7x.
• Trading Around Resistance:KCN’s share price surpassed its R1 recommended level on 15 April 2025.
• Increase in Expenditure: The company’s corporate and administration expenses rose to AUD 5.65 million in 1HFY25, compared to AUD 4.49 million in 1HFY24. In addition, foreign exchange losses significantly increased to AUD 2.95 million, up from AUD 0.494 million in the same period last year.
• Emerging Risks: Fluctuating gold and silver prices can affect Kingsgate's revenue, making profitability dependent on market conditions.

 Changes in regulations, or political instability in operating regions, especially in Thailand and Myanmar, can disrupt operations and affect project timelines.

KCN Daily Chart

Valuation Methodology: P/E Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers, considering the FY25 gold production guidance, the ramp-up in production at Chatree, favourable gold price environment, and other factors. Peers include Fenix Resources Ltd (ASX: FEX), Brightstar Resources Ltd (ASX: BTR), and Macmahon Holdings Limited (ASX: MAH). Considering that the stock has surpassed its R1 level, macroeconomic uncertainty, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 1.75 (as of 22 April 2025, at 10:45 AM AEST).

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22 April 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.