What a boring, wee company. Quietly they have 152k reserves. They, according to the annoucements, will produce 40k per year, for four years.
I smile that every new gold producer says 'we will do 100k a year'. That is the baseline. If you are 100k you have made the big time.
I am so, so OK with 40k a year for 50 years = 2 mill mined. I guess if we hang around long enough we will end up with the original 4 mill resources and 2 mill reserves.
In any case to my reading we are funded now for 4 years to poke around and find more and prove more. This management is so boring. I complaine to a friend (a broker) the share should be higher. He said 'good, good, good it is too low, so we can buy more'
But funny how the annoucments, all postive, produce no uptick. For once I am gonna hang in with a company. I always sell after making my 10%. KGM we will see what price it really should be by early 2014. One year of production and people will say 'hang on, where did these guys come from'.
For new holders it was an advantage CRK was so on the nose with earlier, do nothing mismanagment. It will take a year or three to get them back on the radar. In the meantime, we get to take advantage!
I am trying to think what I can type re this... my fav (or 2nd fav) company. They are too boring to say much about. Scrape up the ore and make the bars and pay the plant. But one thing you can say. If John Mc says 'we are now goint to find more resoures', then that is what they will do. So every couple months or so we will get an announcement saying... of we found 150k. No one cares about 150k. But if you do 150k 5 times a year for 5 years. Well, you do the maths.
KGM Price at posting:
19.9¢ Sentiment: LT Buy Disclosure: Held
