Ann: Appendix 3B-KBL.AX, page-84

With the outlook for gold being very rosy, this makes a very good punt. Oppies at 0.001, with 2 years to run, is worth running with. Got my share this morning. The punt is not about KBL. The equation is "will gold run or flop?" All the guru's are saying that it will not flop. Several parties are saying it will run and run. One is saying that it will run then flop and flop some more. At the current gold price, KBL has some wriggle room. It has been allowed to get its house in order and it is doing this. Thus if the gold price stays at this level, KBL will survive. The gold price will have to drop dramatically for them not to trade out. But every dollar the gold price goes up, the easier for KBL get their house in order, every dollar of costs they can save, the easier it is.

Forget KBL's troubles, everyone will be working to see that they do not fall. Will gold rise? yes. Then this is the cheapest gold in the world.