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Hi loki01,
According to KRM's Investor Update Aug 2014, KRM's All In Sustaining Costs (ASIC) are $670-$720 USD/Oz. (average $695USD and not $800 as per your post. The only limit on production is the Merrill Crowe gold circuit which is currently 140,000 ton/year which can be upgraded to 200,000 ton/year at a cost of $2 mil. This would lift throughput by 43%.

Talang Santo has been tipped as being similar grades to Way Linggo which was 14.7 G/T (incl Silver). 200K t/a would produce 70K ozs for KRM with a margin of $521 USD/oz or $36.5 mil or 10c EPS or $1.00 SP based on a P/E of 10.

In gold mining they say that grade is everything.
Our open pit Aussie miners are working with 1.5 g/t and have to move 5 to one overburden;
that is they have to move 6 ton of rock & process 1 ton to get 1.5 grams of AU or $64.64c.
This is why they have little or no margins.They'd be better off selling road base.

Moorookamick

(All of this is in my opinion only and gold investors should conduct their own research
and/or consult a financial planned before investing in any gold stock) mm.