ann out production and cash update, page-15

Yes gold lower last couple of days. $1636.60 last time I looked.
Not and end of world, still good profit for KMC at the current projections.
Today's news is that gold is being forecast as the commodity of 2012, by Goldman Sachs and BREE.

http://www.smh.com.au/business/golds-bumper-outlook-20111214-1otnu.html

KMC SP lower but not a panic selling, in fact the company seem to have very good potential to produce good earnings going by the published announcements.

The fact that it is not attracting any support is worrying and makes one wonder if there is more they are not saying.

I try to analyze their statement using logic. If they do not say that they made profit on they sales until now , I assume they did not. Otherwise they would tell us, right?

There are many ways they could have been operating as to produce low profit or loss. By concentrating on drilling and further exploration to establish the mine potential, you are burning cash, whereas digging up and processing ore with known AU concentration you are generating positive cash flow.

SO it is a balancing act that can produce just about any result you want with the limits of the operation.

By that I mean, they could go full bore digging up, transporting and processing the dirt with highest AU concentration and generating max positive cash flow, The limits would be: How much ore did Barrick agreed to processes every months or any agreed time period, and if all this dirt could be dug up and delivered during this time frame.

Or the opposite situation, The operation could put all its efforts into exploration only, drilling and testing and trying to establish the JORC resource and ignore the short term mining and gold production. Obviously this would result in max negative cash flow, and sooner or later the company would run out of the money in the kitty and would need to either raise a loan or tap their share holders for more cash in exchange for new shares.

As KMC is exactly in this situation, one wonders about their prospects and how successfully they have been balancing their production and exploration.

I reckon if they were making a bundle, they would be shouting from the roofs about it.
But maybe my suspicious mind is too paranoid.