KRM 5.56% 3.4¢ kingsrose mining limited

Ann: Quarterly Activities Report , page-2

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  1. 7,501 Posts.
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    It looks like the old mine will be mothballed for the present and that Talang Santo will
    be the producer for the near future.

    The question is at full production what will Talang Santo Produce ?
    My guess is as follows:

    (a) Plant has a capacity to process up to 600 t/day
    (b) 3x haul trucks have the ability to haul 50 ton/shift each (450 ton/day)
    (c) grade as per ann of 12 g/t AU + 151 g/t silver (14.3 g/t AU equivalent)

    Suppose that Talang Santo can produce 450 ton ore /day (truck limits)
    then that would be 75K ozs p/a & at $700/oz profit X 85% would be
    about $44.5 mil p/a or 14c EPS, @ a P/E of 10 = $1.40 SP

    With the POG trending up and the AUD being around 91c US , KRM's prospects look good over the next year IMO, but Mr Market is likely to be cautious until after the Sept Qtr results are announced.

    Cheers
    Moorookamick
    NB: Please DYOR.
 
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