3 million ounces, page-22

re: * 3 million ounces question to cloudstreet I am comfortable with my comments on KCN.

I have seen their presentations at various venues including Diggers over the years.

Last year I looked at them very closely as I felt with only one or two developments they could have outperformed.

Those developments included the clarification of local ownership-which was promised but has not been clarified to date.

Another was the the obvious movement of one of the main ore bearing zones going into the OXR ground to the south east-yet they have not been able to come up with a commercial outcome with the OX.

I noted the share price moving backward then I noted yet another MD was given his marching orders.

More recently I was aware of the crud with the mooted rumour of OXR being interested in KCN (which any half decent financial strategist would have immediately dismissed-the OX needs cashflow in the short term dropkicks, hence Golden Grove acquisition), then noted that the rumour was never followed up by the jounalist in question or even the ASX for that matter. A couple of discreet enquiries up north confirmed that the most senior KCN personage was allegedly pushing the story. And the only group to benefit from the rumour machine was KCN-not OXR.

Now we have seen the resource upgrade by KCN-but look how the resource grade has been crucified -last quarter head grade 2.56gt Au-periods to come , 1.90gt Au. Well there goes your dividends. This all smacks of window dressing-and for what reason?

As to supporters of the stock, I note that both xerxes and acturtle have made positive comments on the stock in the past 24 hours. Both I rate highly so I probably have missed something-not for the first time.

As to gold stocks generally, have only biy product producers in my exposure-RIO and LAF.

As to preferred gold stocks-the market leader is on a revitalisation curve (NCM) and i would expect it to out perform in the second half as production from Telfer should surprise on the high side given the nature of recent stockpiles (higher grade awaiting plant modification).

PSV scares me as the head grade gives you no room to move if there is a hiccup-and with bioleach recovery, hiccups have been the norm to date.

I prefer BGF for the more aggressive, and BDG for the more conservative of the Victorians.

ADU must have kicked a cat earlier this year. Based out of the safest Afriacan countries in terms of political risk (Ghana) its projects continue to strengthen. The argument against it is that they have considerable potential at depth, but the ore is refractory. The counter to this is that the comnpany does not include the refractory ore in the substantial resource figureOne of the favourites to be knocked off in the medium term as it offers plenty of upside for Anglo Ashanti whose operations are just up the road.

DEG and AMM have not exactly set the world on fire in the past twelve months. BMO probably offers more immediate potential.

CRS has a number of clouds with so many operating questions unanswered.

AVO and more recent ly Agc have interesting results of late and are worthy of further consideration, as is IGR-low grade resource to date, but is lifting it on a very regular basis as their exploration programme unfolds.

CAZ and JAK are active but results to date are only mildly encouraging. Same with DOM.

There are plenty to choose from depending on what you are trying to achieve and the level of risk you are willing to endure.

Goodluck-the metals boom is due to start on Tuesday-pick your favourites!!!LOL

Cheers,TAS