Ann: March 2016 Quarterly Activities & Cashflow Report-KRM.AX, page-19

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DSD

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19/05/16

10:09

Post #: 17809667
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Originally posted by loki01 ↑

DSD

Interesting comments by you.

Do you have mining industry experience or training, eg in geology?

I know that Bell Potter were supportive of KRM back in 2015 and gave them a valuation of 49 cents at one point. However I have difficulty in arriving at a valuation much above 25 cents on the basis of what they are currently achieving.

As far as I know their plant can process 120k tonnes per year (for a small outlay it can be upgraded to 200k tonnes per year). They are presently mining at 10 g/t but have mined at 12 g/t in the past. Assuming they found enough ore to fill the plant at 12 g/t then at a recovery rate of 95% they could produce 44k ounces per annum. If they could increase the plant capacity to 200k tonnes pa and found enough ore then gold output would be 73k ounces.

KRM has around 360m shares on issue (plus some options).

Cash flow from operations on 44k ounces (assuming USD POG of 1280, AISC of USD750) would be about USD23.3m (AUD31.9m), of which 85% would belong to them (their level of interest in the mine), minus tax. One needs to deduct admin and exploration costs as well as any tax payable to Indonesia (no idea if they get a tax holiday there like MML has, and will expire soonish).

If my figures are approximately right then KRM could be a bagger from here.

In the unlikely event they could produce at 73k ounces per annum, I suppose they might hit 60-70 cents.

Investing in KRM would require one to overcome fears of severe country risk. On a short term basis that may be OK.

I have not yet checked what their claimed resource and reserves are, to determine a mine life.

KRM has always seemed vastly overpriced. People seemed to be pricing KRM as if it was to become another another $8/share MML.

loki

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Hey loki I grew up in a mining family but am no geologist. As stated I'm worried re water ingress prob but management reckon 8 from now it will be ubder control. Their trk record not good though.

KRM Price at posting: 18.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 3.7¢		Change 0.000(0.00%)		Mkt cap ! $28.59M

Open	High	Low	Value	Volume
3.8¢	3.8¢	3.6¢	$21.06K	579.6K

Buyers (Bids)

No.	Vol.	Price($)
1	79968	3.7¢

Sellers (Offers)

Price($)	Vol.	No.
3.8¢	34105	1

View Market Depth

No.	Vol.	Price($)
1	79968	0.037
2	276973	0.036
2	335714	0.035
1	500000	0.034
2	650000	0.033

Price($)	Vol.	No.
0.038	34105	1
0.039	1100000	2
0.040	147598	2
0.041	200000	1
0.042	25000	1

Last trade - 11.39am 26/08/2024 (20 minute delay)

KRM (ASX) Chart

Ann: March 2016 Quarterly Activities & Cashflow Report-KRM.AX, page-19

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Ann: March 2016 Quarterly Activities & Cashflow Report-KRM.AX, page-19

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