Ann: Half Yearly Report and Accounts , page-2

Hi all,

It’s been very quiet on the KRM thread for a while, has anyone heard anything at all?

I have just read the half year report on KRM and it reads very well in regard to the gold grades etc. However, it’s very short on detail in regard to when they intend to start actually digging the stuff out of the ground. Apparently the Indonesian Mines department is set to give approval sometime in April; however, their record on meeting deadlines these days is not great and they don’t appear to be in any hurry to see income from mining, particularly in light of talk about a 40% copper production reduction from Grasberg. I thought having a strong local Indonesian team on side would be of assistance here but it doesn’t appear to be the case.

Maybe it’s just me but if I had gold grades of 53 g/t I would be keen to get onto the stuff and at least piling it up outside the plant but from what I gather they are still only doing minimal development work. I guess like all these things it always takes a great deal longer than we would wish.

With the Gold price hovering just under the AUD $1,500.00 mark they should be able to produce some good production numbers providing they keep an eye on the costs.

Not to be critical of the current management but it would be nice to at least be kept up to date on what progress if any is being made with the mines department and the possibility of getting this show back on the road.

In the mining industry it’s often said that “a great deal more is said than done” and certainly recently the management have said a great deal more than they have actually done!

With respect teasing current shareholders with bonanza Gold grades is one thing but until it’s out of the ground it’s meaningless.

Cheers and very best regards: Andy