Ann: Corporate Update, page-17

If you take what management is saying at face value for the cause in delay in Thai Credit facility.. then this facility should be in place... ' I am not going say 'Imminent'.

In previous posts I have mentioned that KCN is still backed by strong fundamentals i.e. my valuation at 12% discount rate for next year is $2 sp when KCN ramps up full production at 120koz pa at current POG. KCN's AISC is not impressive, there are Australian start-up gold producers (such as FML) with lower AISC projections.

Despite current bearish sentiment on gold - Gold price will remain strong in the long term for these reasons:
1. Global recession likely in next year
2. Demand for gold from China will be robust.

China will be in deflation for a long time, why the property bubble just burst.. Property bubbles in China have been bursting for over a decade in their Tier 2 and 3 cities, but we seeing over 30% declines in apartment prices in tier 1 cities recently. Property was China's preferred investment options, China's stock market too volatile. China being in deflation will mean the government will have to stimulate the economy and devalue their currency.. We just witnessed Gold premiums in Shanghai gold exchange skyrocket over global spot prices, until China increased their gold import quotas,. A devaluing Chinese yuan will be good for gold demand in China.