Has KAL heard of the BCG Matrix

For those of you who know the Boston Consulting Group's elegant thinking on product portfolio management then you'll be way ahead of me on this one.

For those that don't, you'll like this elegant but simple philosophy on product portfolio management which proposes that every company should view its product lines by classifying them into four categories which are self-explanatory:

Cash Cows; Rising Stars; Question Marks and Dogs.

The model goes on to say that you take the profits from your cash cow products and invest those in the rising stars to bring them into cash cows and a little into the question marks to prove them or move them into the dog category...and yes you guessed it...get rid of all dogs. Sorry dog lovers.

If we apply the portfolio management strategy to mining then we get a situation where the strong prospects for Kalgoorlie should be viewed probably as a question mark that, with investment, should move into the rising star category. Following the strategy, what KAL needs then is a cash cow to generate the required funds to move into strategic portfolio management of all its tenements.

The timeframe from investment to returns gets stretched for those favouring mining so why not...and call me crazy....look to provide shareholder returns early by bringing in a cash cow, providing a stream of further investment interest and at the same time, provide an increase in stock price.

The only way KAL can do this is by merging with a producing mine which we see happening all the time. Alternatively...they can buy a mine which has been mothballed and is ready to go at a huge discount.

The issue is that there are not many about. There is West Red Lake owned by that Guistra guy, so that's off limits.

Was sent info on Tucano by a fellow investor... https://us21.campaign-archive.com/?u=913996f1596246c3d20908d1e&id=572b543c37
For not much money US$30 plus million, you get a mine which will produce 110,000oz/pa with a target AISC of $1,400/oz. Surely that would provide enough cash to manage KAG's eight or so Australian projects and develop a strategic business.