Australia's Kingsgate Consolidated is a gold producer that is off the mainstream radar screen.
For many years Kingsgate has been proving and developing the Chatree Gold Project in Thailand.
KCN reported a big turnaround in profitability in 2007-08 and has been ramping up production at Chatree since last June. Calendar
2009 has kicked off very strongly - gold production was 33,000oz in the March quarter, up from 12,771oz in the December 2008 quarter, at an average cost of US$344 an ounce. Kingsgate expects to produce 150,000oz in calendar 2009 at an average cost of US$350 an ounce.
Kingsgate has a strong balance sheet with good cash flow. At US$350 an ounce KCN is a low-cost producer by world standards. The 2009 year is shaping up to be a good one.
Eye on the Sky
Casino operator SkyCity Entertainment Group has strengthened its balance sheet by successfully raising $228 million early this year.
SkyCity cut its interim dividend for the six months to December 31, 2008, but its interim result was creditable, given the economic and market trends.
Much will depend on the New Zealand and Australian economies for the rest of 2008-09. Visitor arrivals to New Zealand, which have in the past played a part in SkyCity's results, are starting to improve. Since reporting a sharp drop in net profit for the 2007-08 year, SkyCity management has focused on product mix, pricing, presentation, customer service, marketing and loyalty.
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