Classic case of the baby being thrown out with the bathwater,...

Classic case of the baby being thrown out with the bathwater, IMO.

The fundamentals going forward are still the same:
-POG in AUD is $1396 (higher than it was in July)
-KRM closer to full production than what it was in July (due to hit full production in 2 weeks)
-derisked better than July
-all-in sustainable cost (AiSC) the same as July
-profit margin the same as July
-mining closer to rich Splay vein than it was in July.

The SP has dropped from 55c to the current 37.5c , IMO,
due to general market bearish sentiment and instos
generally selling down their gold stocks because of perceived
margin squeeze.

Locals such as NCM has an all-in sustainable cost (AISC)
of about $1080 US ($1277 AUD) are marginally profitable
while a low cost producer like KRM with an AISC of $700 US
($795 AUD) are still very profitable but this is a case where
MR Market is not differentiating between the two.

KRM is a relatively illiquid stock (nominal turnover of about 250K/day)
and an extra 200k sales in a day can also have a significant impact
on SP. The converse is also true when there is buying pressure.

The two key dates are:
(a) confirmation of full production throughput in mid Oct
(b) Sept quarterlies at end of OCT.

Even at the conservative 40K AU forecast for FY 14-15, KRM's NPAT should be
$24 mil or an EPS of 6.7c.
If KRM produces say another 12 K ozs AU due to the Splay vein then the extra
10K ozs ($14 mil AUD) should go to the bottom line which would be an extra 3.8 c EPS.
(total EPS of 10.5 c). With a conservative P/E of 10, this, IMO, should take the SP
to over $1
Cheers
Moorookamick

PS: all of this of course is IMO only and investors should do their own research and consult
a licensed financial planner before investing. MM.