gold price down. think kcn, page-27

good points tremeer

it was only recently that there was almost parity between the $us and the $au - but now there is a 10% difference. for the overseas buyers , then kcn must be at bargain levels (but then again that depnds on their own currencies), as the share price has also retreated a bit. interestingly, on another thread (igr), watso picked up the following comment (from md of igr )''


"The Australian market has demonstrated a repeated capacity to buy rubbish and sell quality that is why there are essentially no domestically controlled mid-tier gold companies as the market offers up our strong emerging juniors to overseas companies at discount prices they cannot refuse.''

watso of course, is nothing more than an innocent bystander, except that it seems that serious accumulation is going on with kcn. todays turnover of almost 500,000 shares is evidence of that - and particularly the closing auction, where about 90,000 shares were snapped up. this closing auction activity has been relentless over the past few months.

are overseas interests snapping up kcn on the cheap????.

sorry tremeer - but back to costs - guess that a lot has to do with the exchange rate of the thai baht to the $us. seriously though, that really only makes a difference at the margins. the bottom line is, is that if the gold price dropped to us$400 per oz, then the company would still be making money - and the costs of production would be less, as the royalty payments would also be less

to answer some other comments on the kcn threads

$#@!

your following comments

"The delay of leases forced them to close down production to a trickle"

your comments are wrong - the company has not closed down any production - the mill is operating at FULL CAPACITY

the last quarterly shows that the company treated 544,000 tons of ore (ok - that is about 10% down from the june 1/4 of the previous year - but there could be various reasons for that) - the mill is operating at capacity, it is just that the grade is low. nevertheless, a buy back seems most improbable at this stage. in two years time, the situation might be different

the bottom line is that there is sustained accumulation going on, and in an earler thread, watso mentioned something about following the "smart money" as the smart money has the resources etc, to work out what is good buying. it is only a matter of time, before there will be one or two "change in substantial" shareholder notices

given the current market - even though watso thinks the stock is a buy, he will choose "hold" for sentiment