As they say, a good way to make small fortune is to start with a...

As they say, a good way to make small fortune is to start with a big one.

Some of us got sucked in with the article in the newspaper that KMC is progressing from exploration to production stage.
That is when I got in, anyway.
I was quite impressed with the way the company announcements came out, regular, good details on ore body, purchases of the mining equipment, pretty pictures, graphs, maps. The only thing that was never there was production cost.

I admit, I had no idea how much the production costs may be, but I reasoned that the directors must have done their sums, they knew the price of gold, ore mineralization , wages cost, concentration, they must have pretty good idea on cost of haulage, you do a small spreadsheet and its is all there.

I did not think they would be that stupid to spend 3 or 4k to produce 1oz of gold.

I recall some hotcoperittes debating how much the production cost could be, 800 to 1000 per oz tossed around, so it all looked honky dorry.

Then in December we got the three month plan, to deliverer big shipments to Barrick for processing, this time they mentioned estimated production cost of $1088 the rest would be all profit about 5 or 6 mill give or take.
There were some hints that the previous shipments were break even or maybe loss making , nowhere it was mentioned that they were losing money hand over fist, spending 4bucks to make one.

More and more I think of this, it looks like it was a big slick con, from the big fanfare to this sad heap.

I do not think that there is much chance to do anything legally, do not wish to send more good money after bad, be in capital raising, or legal action. I am puting this one down to education in the School of Hard Knocks.

Some others might pick up the pieces at half a cent a share and dream about the glitter of gold, it was good while it lasted, but this old sod has learned hid lesson.