Kingsgate Consolidated Limited (ASX: KCN) shares are in the red in early-afternoon trade on Tuesday. At the time of writing, the ASX stock is down 1.43% at $7.225 a piece.
Despite today's dip, the stock is still 25.22% higher year to date and an enormous 435.56% higher than this time last year.
The increase means the stock has significantly outperformed the S&P/ASX 300 Index (ASX: XKO), which climbed 10.21% over the same period, and has outperformed the S&P/ASX 200 Materials Index (ASX: XMJ), which increased 52.04% over the year.
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Who is Kingsgate and what does it do?
Kingsgate is engaged in gold and silver mining, development, and exploration, operating on the Pacific Rim and with headquarters in Sydney, Australia.
Its main operation is the Chatree Gold Mine in Thailand, which restarted in 2023 after the Thai government halted all gold mining in the country in 2016. Kingsgate also operates the 100%-owned Nueva Esperanza Silver Gold Project in Chile's Maricunga Belt.
The gold miner was added to the ASX 300 Index amid a quarterly rebalance in September. The company has a market capitalisation of $1.95 billion.
What pushed the ASX stock higher over the past year?
Kingsgate has ridden the wave of soaring gold prices over the past year as investors flock to safe-haven assets amid worsening geopolitical instability.
The gold price spiked at an all-time high of US$5,419 in late January. A dramatic buy-the-dip rally sent the metal's price south earlier this month, but recent geopolitical turmoil has seen investors flock back to the asset.
The gold price held above US$5,300 on Monday, paring earlier gains after spiking past US$5,419. At the time of writing on Tuesday morning, the gold price has climbed another 0.58% for the day to US$5,353.
What do analysts expect next?
Even after Kingsgate's price surge over the past year, it looks like there could be room for more in 2026.
According to TradingView data, two analysts have ratings on the ASX 300 gold miner. One has a hold rating, and the other has a strong buy rating. The average target price is $8.07 per share, which implies a potential 12.15% upside at the time of writing.
