Ann: Challenger Strategic Review , page-8

Black,
I post this information for your reassurance.. But by all mean trade the stock when you see 5 to 10% profit..

It looks like gold is to recover to $1,350 level short term. KCN shorted position has been rapidly covered from 9%+ in April to 3.6%+ this week.

http://www.igmarkets.com.au/cfd/the-short-report.html

Your entry price at $1.50 is not a worry if I were you. My 1st lot was at $2.9 and averaged down to $1.55 until now.

The group total cash cost including royalty payment is at US $843/Oz as reported in Dec 2012. Chatree cost US$736/Oz ($163 royalty included), and Challenger cost at US$1,026/Oz.

They are cutting 30% cost from challenger to reduce the cash cost below US$800/Oz.

It is clearly KCN is profitable even at US$1,000/Oz

Net assets for equity was at $778mil as reported in Dec 2012. The current expected assets write down for the next quarterly report is $300mil, which still leave $478mil ... nearly two times the current market cap...

The net debts is at $130mil.. They can pay it off within a year cash flow..

Well, you can work out the long term value of KCN then hey... Good luck