silver hedge

The Credit Suisse presale of $13 mil/480,120 ozs silver ( $27.08/oz)
commenced March 2011 and finishes March 2013 was an astute deal
because it permitted the company to retire debt early and position it
to pay a dividend, again early.

Since March 2011 silver temporatily spiked to $40/oz+ but has now stabilised
around the $27-$28/oz mark (averaging about $30/oz over the past year.As the industrial demand for silver improves the price relationship is likely to normalise
IMO at about 50 to 1 in relation to gold. At present silver seems underpriced at
about 57 to 1 to gold.

If Gold remains constant, then a 50 to 1 with gold would take silver to $32.40/oz and KRM's silver production adds significantly to its bottom line.


With kind regards
Moorookamick