Ann: Mineral Resource Estimate and Feasibility Study Update, page-3

Another significant resource upgrade which should underpin a large increase in the NPV of this project.
There is a massive difference between the forthcoming FS and the line done a few years ago.
Last time they were looking at a 1.6 MTPA operation with a 1 year open cut.
This would have meant they had to schedule the early start of the underground to have the stopes ready to feed the mill.
They have now expanded open cut resources to around 8 million tonnes and the current program is designed to identify more
open cut ore which enables a much slowed underground development that can be funded from cash flow.
The new study is to be based on throughput of 2 MTPA and at the grades reported the value of the ore will be close to $300 a tonne.
Hopefully slowing down the underground development will reduce the upfront capital.
In any case the project looks as if it will cash flow over $300 million a year from the open cut.
Unfortunately there does not to be a mining analyst in the country capable of doing the numbers which are fairly basic.
They are running around recommending stocks with less than half the grade of KGL with substantially higher development costs.
Fortunately this has enabled me to con tinge to build my position with a short term target of 30 cents and a long term target of $1 a share.
The Salim group,one of the wealthiest families in Indonesia certainly understands the maths.DYOR.