<What do you think of BGO and KGC?>
I own a little of both, with a bias towards KGC. IMO, KGC
is undervalued due to the uncertainty surrounding the
merger and reverse split. They also have a lawsuit against
thier Russian affiliate. It's my understanding that this is
nearing final resolution.
They both have some good properties. They both have mines
with country risk in Russia and Africa. Then again, i could
make the argument that there's risk in the US. They both
have hedge books that are somewhat underwater. In the case
of KGC they have been delivering into their hedges and plan
on closing them. I don't know about BGO, as their hedge was
required by the Jullieta lenders.
I'm not enamored with the dilutions they both have recently done, it seems most of the miners have been doing this lately. In the longer view it's probably smart to have cash
for strategic acquisitions, and or, accelerated exploration
during the early stages of a gold bull.
All in all, i favor KGC. If the merger goes through they will become the 7th largest miner in the world. All JMHO
as i'm no analyst.
Disclosure, my positions from largest to smallest:
GLG,HMY,HL,KGC,CDE,WHT,MNG(was MAENF),BGO,METLF.
Sorry for the rambling post. regards, danny |
