KGM 0.00% 1.3¢ kalnorth gold mines limited

ok, i will kick off, page-8

  1. 5,474 Posts.
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    they say when the ore is delivered to the mill they will be paid; so money should be coming in Jan / Feb. They will be a couple months late. But nothing to worry about.

    The shares issue caught them because they had to pay for the acquiring of that nearby lease. The only bad thing about the new lease is the grade is really poor - averaging about 1 g/t.

    The issue was fair as as a 1 for 5. I hate these Cap Raisings that are a motza for mates then the flat buy in for other shareholders.

    KGM (John) seem fair and commercially focuses (quoting from him!).

    I am surprised this has fallen back a bit. But if you hold you just need to wait until it becomes cash flow positive. Then it should just grind up forever. And when dividends come, that will be fun.

    Finally, they have always advertised they are green field. That 4 mill oz from years ago was a guess with very spaced drilling. But by my reading over the last two years, all the infill drilling has been 'as guessed' before. Who knows, maybe the 4 mill was true. I like that John is targetting 500k resource increase per year. I wonder how many years he is planning.

    I am still of the opinion they will end up (without any risk) with 2 mill oz resources and 1 mill oz reserves and they will dig out 50k oz per year for 20 years. Put that with a gold price in the 1800 - 2000 range in the next year (just as they start producing) and it should be a simply cash positive operation.

    Note the phrases over time in the annoucements... open to directions, possible underground, possible stand alone (I guess that means a plan), etc.

    But these guys will slowly grind along. It is how I like my companies to be. No flash. Just work, without the BS
 
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