Ann: Annual Report to shareholders, page-12

KAU could be heading into a perfect storm of news in coming weeks that could prove strongly supportive of the SP if not be the catalyst for a jump to above the past year's trading range.

underpinning all news is the recent surge in the spot price of gold in Australian dollar terms to be quoted now at AUD$3,072, up from $2,873 on Oct. 3 and a gain of $200 in just two weeks. This is pure gain for KAU and fattens the already wide net margin expected for gold production in fiscal 2034-24.

KAU's annual report for last FY said the company is poised to increase production and profits this FY. Evidence of this is expected in the Sept. quarter report due by the end of October.

in a production update for July issued Aug. 15, the company reported "increasing production rate has already delivered Kaisers largest weekly gold pour derived from gold in circuit (GIC -without mill liner contribution) of 12.9 Kg of high grade dore (Figure 1). This is Kaisers best weekly gold pour. Due to grade and processing variability this is not a reliable indicator for the upcoming quarter, but it is certainly very encouraging."

Kaiser Reef also said then it expected to begin processing more virgin ore from deeper in the A1 mine that could move head grades towards the mine's historical average of 25 g/t and less of the remnant ore left by previous owners that graded 8. g/t in the June quarter.

Summing up these factors briefly, it's quite reasonable to expect Sept quarter gold production to more than double from the 2,075 oz produced in the June quarter, which generated revenue of AUD$6.1 million at $2,950/oz.

were production to have doubled in the latest period that likely generated revenue of around $12 million. AISC would naturally fall on more ounces produced, likely generating some handsome net profit for a boutique underground miner.

KAU's SP hasn't responded to the higher AUD price of gold this month with some sizeable offers standing in the market in the range 17.5-18.5 cents range capping upward movement. Some meaty bites were taken out of the 17.5c offers on Friday, suggesting if serious demand emerged for whatever reason the capping effect of these prices would be brushed aside.

the market never seems to take much notice of KAU exploration results despite the company reporting some of the best intercepts turned up by the entire industry each year. KAU last reported some drill results on Aug. 15 so there could be some further results ready soon for publication.

any news about the timing and expectations of a possible restart to the shuttered Union Hill mine at Maldonc could on its own spark an SP rally. Holders are certainly due an update. A successful restart of this mine would substantially derisk KAU.

as you can see, there's much to be cheerful about the prospects for KAU in coming weeks and months. And these are just with the known unknowns.

GLTAH