Talang Santo being a newer/better developed mine than Way Linggo...

Talang Santo being a newer/better developed mine than Way Linggo is likely to
produce a higher volume of ore.

Since the addition of the Sag Mill over a year ago to the grinding circuit ,
the throughput capacity has been lifted from 250 ton/day to almost 600
ton a day.

In the past 44,000 ozs at 12 g/t is about 311 ton/day throughput.

The recent report indicates that the Talang Santo Grade , similar to Way Linggo,
has been underestimated.

If Talang Santo can produce to the plants optimum capacity of say 500 ton/day
/12g/t, then this would produce 70,000 ozs AU /p/a.

To kick off production right away there is development ore at Talang Santo
ready to be trucked to the plant with 9g/t grade.

Even at today's gold prices I am advised that KRM's gross margin is $800 AUD/oz
Even if we net this down to $600/oz and if we factor-in 500 ton/day/@ 12 g/t
we would get $40+ million NPAT and at a conservative P/E of 10 that should take the SP north of $1. Any further lift in the POG from here would be cream on the pie.

Please remember that KRM is not like the biggies such as NCM whose total cost
of production is close to $1200 AUD ( ie: when you acount for all costs) That's why it has a dramatic drop in SP

KRMs narrow vein/UG operation has to only produce and process 500 ton of ore a day while operations like NCM has to move over a quarter of a million tons of rock/day (including over burden) to achieve their results

For example one truck carrying 25 tons of ore from Talang Santo to the processing plant has to make 20 round trips /day- that's an average speed of less than 30KPH .
( No doubt KRM will have a spare truck on standby.)

Cheers to all
Moorookamick

NB: All of this is IMO only and investors should seek professional advice before making any investment decisions. MM.