3 million ounces, page-32

re: * 3 million ounces question to cloudstreet TAS (and others),

Perhaps you should research this a bit further.

OXR confirmed their interest in KCN. You state that they wouldn't be because they need cash. If OXR are after cash then KCN would be a steal at the moment. Plenty of cash on the balance sheet, access to debt, plenty of ongoing cash generation (even with reducing grades) and plenty of cash to come from sale of interest in mine. However OXR probably wouldn't be highly serious given the requirement to sell down the ownership.

The company has been quite clear in relation to the sell down. At the moment, KCN are required to sell down so that they own no more than 49% of Akara Mining (the Thai company). This will be sold either to Thai interests privately or via a float on the Thai stock exchange. Do you think Thai people will be interested in having an ownership interest in the only real commercial gold mine in Thailand.

If you read the Grange report you will also see a method whereby the company may still satisfy the requirements to sell down and still maintain control of the mine.

There may also be an ability to retain 60% interest in the mine if the new trade agreement applies to the investment (although it was initially only designed to apply to new investments).

You mentioned KCN having an ore body running into land owned by OXR. Perhaps you want to look at the area and understand the limited amount of land OXR have. They are basically surrounded by KCN. If anything, OXR really need KCN. You also need to understand that in Thailand, you need to own the land, not just have an exploration licence, in order to explore the land. If you explore before owning, you get in trouble whether you find something or not. If you find something - the price of the land goes through the roof as well as everything around it. In any event, there is so much gold around where KCN already own the land that I don't think they will be too worried about OXR. You may also like to look at some historical drilling results of KCN - why do you think KCN have focused on other areas ( being north, not to the south-east) and don't have the land that OXR managed to obtain an exploration licence for - there are bigger fish to fry.

In relation to Steve Reid leaving - it is quite clear that he wasn't given his march orders - quite the opposite. I think you claim to be in the industry - but have no idea of the reasons for him leaving.... raises questions about the other things you say. Perhaps you should see where he is now and you may get some ideas.

You talk about the KCN grades. Perhaps you should understand the cut-off for the current operation before saying that the dividends (profit) disappears with grades of 1.90g/t. How much do you think it costs to truck ore in Thailand. Perhaps you should make enquiries about the impact on the required grades of moving ore, say 100km - you may be surprised.

In relation to the grades - it was always envisaged that the grades would reduce - why do you think the plant has been expanded and is proposed to be expanded again?

The key issue for KCN is opening up Prospect A, etc. for development so they have sufficient ore to extend the life of mine. There is plenty of gold around, but the administration in Thailand can be slow in a number of areas - and mining is one of them.

KCN is not the kind of stock where you will get huge increases from a gold find, but it will steadily build. The stock got hammered by 1 poor quarter - where it was still operating with better performance than most mines in Australia. KCN need to increase production in order to not be subject to a takeover. Any takeover would need to be at a huge premium to the existing price.

Regards
Marvin the Mindreader.