trading halt - ann incoming?, page-10

Fundamentally KRM is still in the same position it was in Aug 2012 with
the exception of the drop in production from about 10K Au gold
equivalent to 4250 for the Sept Qtr & the prospect of a similar result
for the Dec Qtr.

The Qtr report said that production would back to normal by Mar 2013
and since the market always looks forward, this should, IMO, see the
SP recover.

In the interim, the ongoing accidents inquiries should result in much
safer mines. Mining is a dangerous occupation and even a miner as
big and sophisticated as BHP has had fatalities in WA a few years ago
but once the the inquiry was complete, production got back to normal with
improved safety proceedures in place.

KRM's strength is its grade and its low cost of production and if the old
addage is right ( grade is everything) the market will soon see value in KRM
once the current accident problems are sorted.

The drop in share price from $1.25 to 89c is an over-reaction, IMO.
Realistically, this setback will result in about 12K ozs gold equivalent loss
( say $12 mil net) which is about 4c/share- which is equivalent to
the cost of the recent dividend.

IMO, for long term holders, the SP should kick back once the mines resume
full production come next March.

With Talang Santo on board, KRM has the potential to lift production to
60K ozs p/a gold equivalent at a time when QE3 is driving up the POG
and the silver hedge will be retired next year.

With kind regards to all
Moorookamick

PS: Please remember that accidents are just that and it is simply futile to
assign blame to management without knowing all the facts. The government
inquiry will provide us with the facts later. MM.