re: Ann: Credit Suisse Provides US$15m Financ... KRM's cash at...

re: Ann: Credit Suisse Provides US$15m Financ... KRM's cash at the 30th Sept was $8.6 mil. The accident occurred in Mid
Sept, so only 2 weeks in the quarter were impaired.
The plan had been to transition from Way Linngo to Talang Santo, mine out
the pillars from Way Linngo and backfill.

The accident stopped T. S. and it was considered unsafe to mine out the pillars.

Instead KRM mined what it could from W.L ( half normal production) while driving deeper to lower level veins.

The Sept Qtr reported $8.6 mil cash & the Dec Qtr reported $8.8 mil cash
This is a cash burn of $4.8 mil if we factor-in Mr Phillips' $5 mil loan.

IMO this was lower than expected considering that:
(a) Way Linngo was operating at half production
(b) Exs due to fatality inquiry and remedy such as escape shafts and pumps
(c) Costs of extra permits
(d) Driving deeper in Way Linngo.

No doubt some of these exs are still ongoing.

If I were given the choice of a cap raise and this loan I would overwhelmingly go for the latter. This is the benefit of having directors and management with serious skin in the game.

While the short term technicals on gold are bearish, IMO, the long term driver
of gold will be inflation and the USA, Japan & the EZ are accommodating long
term inflation by printing massive amounts of paper money. Brics such as Russia, China and Brazil are buying gold reserves at today's price because they are
keenly aware of how quickly inflation can hit. Just have a look at Indonesia's
inflation figures released yesterday.

Thank you kindly for your post
& very best regards
Moorookamick