Ann: Boardroom Radio presentation 19.7.11 , page-11

Hi MikeMennell,
With low daily volumes & volitility,
investors should revisit the fundamentals
of KRM in order to revise their investment strategy.

The basics are:

Mkt Cap.............$375 mil
SP:....................$1.46
No of Shares........257 mil
52 week hi/low...$1.97/$1.16
Forecast production: 45K Gold & 480K silver P/A
Cash & bullion @ 31 Mar....$23.9 mil (likely $35 mil now)
Forecast EPS:...16cents (conservative)
If we x by forward multiple of 12 we get $1.92
Forecast dividend by end of year.( by Chairman).

The strengths of KRM are:
(a)Low cost production costs due to an
average of 41,258 ozs silver prod/month factored-in. (20K ozs/month hedged @ $27/oz for 24 months from ist Mar 2011)
(b)Sumatra based for low labour & taxes.
(c) Large tenement with other rich prospects eg: recent
Talang Santo find 7 ks from plant.
(d)Prospect for growth to 100K oz/P/A over the next 2 years or so.

With silver now above $40/oz & gold almost $1500 AUD/oz
the prospects of this little mine are rosy.

Cheers
Moorookamick

PS: SP volitility is likely to continue due to low volume.
Yesterday mkt. depth ,for example ,saw only 48k shares on offer from $1.46 to $2.00 so dont be surprised if there are up to 10 cents daily moves. MM