Ann: Anthill Mining and Treatment JV Signed , page-12

re: Ann: MKO: Anthill Mining and Treatment JV... Watso

It appears to me that we are focusing on different aspects of the deal.

If we are looking at the pay down period of a $35m loan, then I would agree the MKO deal is not going to half the repayment period.
Repayment of capital comes from profit and I would not expect huge profit directly from the MKO deal. $1-2m pa maybe all the profit that KMC gets. If there is any profit.

My point was that the MKO deal deducts all of KMC costs of mining and processing the ore. These costs that will be deducted will be far reaching, including:
Admin
Finance
Interest
Depreciation (on the mill)
Maintenance
Wages
P&G
Vehicles
Machinery
Insurances
and anything thing else they can think of.

These deductions of costs will sigificantly help KMC bottom line.
The advantage to KMC from these cost deductions will be may times the direct profit from the MKO deal.

Time for KMC to make the killig. Could be trick or treat for MKO. All depends on POG