Great Expectations

2014 has been a disappointing year for KRM long term shareholders to say the least as evidenced
by the share price drop to the mid 20s from 60c in July.

We started the year like a Dickens novel with Great Expectations ; a new CEO, a new CFO and
a review of operations which saw the share price peak at 60cents at the reopening of the mine
in July. Negative announcements since then has driven the share price down to the mid 20s
and it is languishing here awaiting decent announcements post the holiday festivities.

Investors expect detailed solutions and timing, not a series of problems and excuses so the challenge
for the new management for 2015 is to get on with it:
-get throughput up to 385 ton/day (its only 16 ton/hour folks or 5 cubic meters)
-access the splay vein and take the average grade to 14 g/t ish
-do the plant upgrade to 500 ton a day throughput for the $2 mil capex.
-take production to 60K ozs p/a +
-pay down debt
-build a cash buffer
-pay dividends.

We simply want the company to be led by the CEO and his team and not by the contract miner
who gets paid regardless of the bottom line.

At present the throughput is about 315 ton/day at about 10 g/t. If that can be supplemented
by 75 ton/day(just over 3 ton/hr) from the splay vein @ 29 g/t (incl silver) this would take throughput to 385 ton/day
@ an average grade of 13.7 g/t. (annualised at 61k ozs p/a without the $2 mil plant upgrade)
The POG is now $1470 AUD/oz and with AISC at an average of $700 USD ($864 AUD) this should leave us with
about 10c EPS or a share price of $1 @ a P/E of 10. If the gold gurus are right, the POG should lift in the second
half of 2015 which in turn should lift KRM's bottom line accordingly

385 ton a day is 16 ton an hour or a volume of about 5 cubic meters (thats a heap of gravel
1 meter x 1 meter x 5 meters long) for 100 odd UG miners. It's not moving mountains
by any stretch of the imagination! Its 160 kgs per miner per hour at the mine face.


So let us hope that 2015 is the year of recovery, production up to nameplate, grade up with
splay vein supplementary feed , POG up and most importantly, the share price heading towards $1
Come on KRM, I know that you can do it. For an experienced CEO, an experienced COO, a mine safety
engineer and argueably Australia's most experienced narrow vein miner, this should be a piece of cake.
Moorookamick

Moorookamick would like to wish the Board, management and staff of KRM a safe and prosperous
2015 and wish all long term shareholders the best of luck for 2015 . You deserve it.
MM.