As nice as the report looks, KMC did not announce the past cost of production. They could have been loss making or breaking even for all we know. So the cupboard could be bare ATM.
They gave us what we have been calling for, costs versus profit, but these are future projections for next three months, not money in the bank just yet.
I am a bit uneasy about cost of production being work out using " Life of the mine Method". What does that mean? It seems to my suspicious mind as some kind of accounting trick where we might be counting some money we have not got. Why not just say it is going to cost me $1,100 to produce an ounce of gold.
Also. this is a projection for next three months only, and there is no hint or promise in this announcement that these figures can me maintained in over a medium term, say over two years, that are needed to build the processing plant,
Report comes at the opportune time for the extra ordinary meeting to approve further new share issue. And to motivate investors to purchase the new shares.
But the report failed to push the SP higher so far, so selling the new shares at 8c looks problematic. The share market overall is struggling ATM and the gloomy atmosphere is not conducive to courageous actions.
Cattle failed to get excited and there is probably no risk of stampede. Unless we get a few decisive bulls to lead.
KMC Price at posting:
2.3¢ Sentiment: Hold Disclosure: Held
