Hi Andy,Thank you for your links.IMO, KRM is being thrown out...

Hi Andy,

Thank you for your links.

IMO, KRM is being thrown out with the high cost miners like NCM etc.
The company has had a rough time due to being out of production for a year
but I believe that we are back in production and likely to produce 1K ozs
in Dec with a ramp up in early 2014.

Even at the POG in AUD at present KRM will be profitable because of its low COP.
It is also leaner since last year and if they can tap the 14g/t + early we should see the COP drop further.

Like you I am confident that the POG will recover in 2014. Commentators always seem to spruik the trend: when the POG was $1800+ they were advocating getting in and now that it is sub $1200 they are advocating the opposite.

Bernanke's announcement of the $10 bln taper is chickenfeed in relation
to the US budget deficit of a $Trillion and accumulated debt of $17 Trillion.
IMO, the taper is a token recognition of the Fed's holding of over $4 Trillion
of Treasuries and MBSs and no one believes that the FED is going to burn
the dollars it gets back from the banks once these securities are redeemed.

The Yanks will be wallpapering with greenbacks if they haven't their houses foreclosed in the interim !

If we assume that KRM can work the plant to near capacity which is about 600
ton/day and that grade is say 12g/t this would produce 85K ozs p/a.
KRM is forecasting half of that. 600 ton per day is only 25 ton per hour or a truck load which is by no means record breaking.

Even if we go by the interinm CEO's conservative forecast of 40K ozs p/a
we should see an EPS of 8-9c or a SP of 80c-90c @ a PE of 10.

If we are lucky, we should get an ann before the end of Dec confirming the restart of Talang Santo and the processing plant in early Dec. Lets hope with Bill Phillips on site that he can guide the miners to the very rich seams and
get the till ringing again. He's a specialist in narrow seam mining and has tons of experience from his days at MML .

Cheers & seasons greetings.
moorookamick