imagine...., page-7

I am thinking through a worst case scenario for KCN if gold prices remain at these levels (or lower) for an extended time.

My thoughts are that Challenger would be put on care-and-maintenance and that Chatree would continue to operate profitably.

At these prices there are many, many Australian based producers that will be losing money and will fold, if prices don't rise in the medium term.

This in turn will reduce the heat/ charges/ costs for Challenger from mining contractors/ suppliers if/when it was put back to operational status.

I'm not saying this will happen - just IMO it is the worst case scenario for KCN.

IMO KCN will survive at these (or lower) gold prices due to its established and low cost Thai operations and is thus a lower risk producer to hold through this recent panic.

Whilst the KCN shorters will be making lots of money I won't be selling them any of my shares to allow them to cover their positions.

I note the disconnect between the paper market and the physical demand. ZH today reports that the US Mint sold 63k oz of physical gold on the 17th April alone !!

Cheers
John