Ann: Independent Review Highlights High Potential of Talang Santo-KRM.AX, page-8

You make a fair point @BoroBoyinoz,

Without any doubt, the way Management have dealt with this water ingress issue has been very far from ideal; accordingly, the KRM SP has halved since January (plus there has been dilution of existing shareholders through the recent cap raising), while most other goldies on the ASX have made gains in the triple digits over the same period of time.

I would also point out that John Morris purchased his most recent 2m shares in May at a price of $0.19; my personal guess is that he did not see the cap raising coming, at that time. All these things do make you question the ability of the management team to stay on top of the situation.

Ultimately, though, the question is whether there is value buying in (or holding) at today’s price, under the assumption that the water issue can be resolved economically over a reasonable time horizon. The results of this independent review do seem to point in that direction.

For what it’s worth, my personal rationale for buying in now is that I have recently taken profit on other positions in the gold mining sector (as they had started looking fully valued to me), but I did not want to reduce my exposure to Gold; hence my reallocation into KRM as a higher IRR gold (and silver) play.

IMHO+GLTAH