You are correct in that investments have not been as economic as expected. This is true of all mining companies as commodity prices have dropped dramatically.
On 30 September KBL closed at 2.5c; KBL closed at 2.2c last night. A drop of 12%
On 30 September BHP closed at $22.22; BHP closed at $14.73 last night. A drop of 33%
On 20 January 2015 KBL closed at 3.0c; KBL closed at 2.2c last night. A drop of 26%
On 20 January 2015 BHP closed at $27.48; BHP closed at $14.73 last night. A drop of 46%
KBL has been able to switch from copper production to gold and silver in reaction to changes in the economy.
This flexibility is due Mineral Hill being a polymetallic mine and to investing in mill upgrades, mostly successfully installed on Brians shift as MD. However it looks like the CIL plant has more commissioning problems than expected. The first pour was delayed from the end of December to the middle of January, so the CIL circuit was not without problems and expectations of the ASX mid-December release were not met.
The SP was due to takeoff and this is Greg's inheritance as the new MD.
We await the December quarterly and the half year report. Both are due shortly.
KBL Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
