gold jumps - kcn down 5%, page-30

We have to remember that $1278 was before a return to stope mining at Challenger, and at the same time as the mining contract was changing hands as well.

There is no doubt that costs must be reigned in at Challenger to make it cost effective in the medium to long term, but I am sitting on the fence until we get some figured from this quarter.

As for Bowdens, I am unsure how you can call it a dud. In light of the fall in POG, it may prove to be more costly than expected, but the 40% increase in resource announced in November '12 to 182m oz ageq must surely offset this to some extent, especially when a lot of the silver is available so close to the surface. An announcement of a successful EIS for Bowdens would prove to be a major shot in the arm for Kingsgate, and allow them to unlock the potential for this reserve.

I know there are a lot of "ifs" and "buts" and "maybes", but maybe if the board has learnt from past mistakes, I can see the glass approaching half fullish.