too late or not?, page-2

It's never too late. I looked at MML when I decided to get into gold and it had just hit $1.75, which basically meant a 300% gain over 4 months for a lucky few people. I thought it had done it's dash and put my money elsewhere (KRM and a few others). I just checked MML now and it's closed at $4.31.

I think that most shareholder wealth gets created over three phases in a junior miners life, first it jumps up once it finds something economic and rises as the feasibility studies get done, second it builds steadily while it constructs its first mine and third it grows wealth as it expands its mine life through exploration or good acquisitions. KRM is mid-construction now so if it delivers a functional mine next year without any incidents or other problems (keeping gold price constant), the share price should be higher as reward for bearing the ramp-up risk. Using MML as an example, when I first looked at it it was in the middle of expanding production to approx 60k oz / year. Now it's expanding production again to 100k oz / year and found another gold deposit. That's what keeps driving the share price up, it keeps delivering during the 2nd and 3rd phases.

KRM doesn't produce anything at the moment while it constructs its mine and now that its flogged off its existing interest to RDR. It's JORC resource is ~ 669k tonnes of ore @ a grade of 8.44g/t. That's relatively small in terms of size (most juniors aim for over 1 million tonnes) but good in terms of grade (a lot of mines in Australia operate at grades of approximately 3-5 g/t). Using my above illustrative timeline, shareholder value will be created in the third phase by exploring the area around the mine to expand the resource and hence mine life. Again, you're risking the company not finding anything but given the unexplored nature of KRM's land, I'm backing them.

Of course, the price of gold could tank tommorow and KRM will tank, or gold could rocket up to $2,000 USD tomorrow and KRM will rocket. But if you invest in this company, I guess you'll be taking that into account anyway.