This is fact !!Monarch still going strong: Kiernan Kate...

This is fact !!

Monarch still going strong: Kiernan

Kate Haycock
Monday, 18 February 2008

MONARCH Gold Mining chairman Michael Kiernan says his company won't be the next Western Australian gold play to fall over.



Monarch's Davyhurst mill

Speaking to MiningNews.net, Kiernan said he was not concerned about Monarch's sharp share price fall late last week on the back of a $10 million capital raising, as the company remains on track to hit its production targets this year.

"What we've got is we've got skeptics � they want to see an instant turnaround," he said.

"I build companies for long-term shareholder value and I don't speculate short-term for daytraders. My one and only focus is building long-term, sustainable profitability for shareholders."

Production ramp ups have been an issue for the company at its Davyhurst operations, and Kiernan admitted the project was about four months behind schedule due to problems at the Walhalla pit, necessitating the $10 million share placement.

"The reason we made this brief, small placement is because the first pit that Monarch mined didn't develop sufficient cash surplus to finalise the development on the three pits we're focusing on for the future � that's Riverina, Mt Ida and Missouri," Kiernan added.

Monarch's production profile would look much better over the coming 18 months as production ramped up and cash costs dropped, he said.

Kiernan's comments may go some way to reassuring shareholders who may be nervous about the company's slow start and its reduced cash reserves � down to $1.45 million before the capital raising � particularly in the wake of the recent collapse of fellow Western Australian gold miner View Resources.

"The company becomes cash positive in March-April this year and the business will start paying dividends next year," Kiernan said.

Monarch's production is forecast to reach 70,000 ounces per month in the next financial year, with cash costs at a relatively high $650 per ounce. Despite the high costs, Kiernan said production would still be very profitable.

"You do the sums � we're going to be making $400 an ounce and those who are selling their shares are short-term clods."

Kiernan also denied any suggestion that the final financing of the Mt Magnet acquisition � purchased late last year from Harmony Gold for a $65 million cash and shares consideration � would be a problem, with Monarch now planning to raise $50 million in its Toronto listing some time during the first quarter of this year.

Kiernan also said he only needed one more project for Monarch to become a half a million ounce producer, and he said he had an eye on several projects but would be primarily focused on proving up operations Mt Magnet and Davyhurst for the next year.

He also dismissed doubters who dislike the flavour of Western Australian gold in the wake of View's troubles.

"It's like Carlton. Carlton footy team had a couple of bad years, but you watch Carlton this year. They might not win a grand final this year but don't bet your money we won't win it next year," he said.

Shares in Monarch gained ground this morning, adding 1.5c or almost 3% to 52.5c.

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""The company becomes cash positive in March-April this year and the business will start paying dividends next year," Kiernan said. " !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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"I build companies for long-term shareholder value and I don't speculate short-term for daytraders. My one and only focus is building long-term, sustainable profitability for shareholders."

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and the Show must go on (-: