KAU MD Hoovers Up 11 Large KAU Shares In Jan

At the end of an undeniably bad week for soiled boutique underground high grade gold miner KAU one looks for any skerrick of good news.

Despite spot gold trading just shy of all time highs at US$2029 and AUD$3078, the battling boutique miner can't take a trick.

There's been trouble at its sole producing A1 mine, where considerable sums have been spent to facilitate higher output from Australia's longest running gold mine. But actually tapping the veins that host the high grade ore is proving way harder than expected.

the company had to parachute a gun underground miner into an executive director position at xmas to fix things. His work won't be apparent in the December quarterly production report due by the end of January.

this report will contain gold output for the period, give a nod to costs, and should provide a comprehensive summary of the geologic challenges and any other troubles at mine, of which rumour has it there's been some.

These factors could coalesce to give long suffering KAU shareholders yet another haircut - only this one with a razor blade.

BUT WAIT, there's a skerrick of good news that seems to have been overlooked. In two separate buys in early January, MD Jonathan Downes spent A$11,250 buying KAU shares on market on his wife's account and his superfund.

this sort of behaviour is generally regarded as a sign of confidence. Downes, like many of us, is tits deep in KAU. He holds 200k share directly, and a further 3..2 million indirectly. His Mrs holds 221k shares, and his superfund 290k.

there's his 4 million unlisted options exercisable at 25c by 22/12/2026, which hopefully fund a bundle of recreational pursuits.

but another tranche of 2 million unlisted options exercisable at 40c by 31/1/2024 likely will lapse - out of the money.

my meagre fjnanical interests in KAU are directly aligned with Downes. If he's buying, and 11 large is 11 large, i'll take that as a good sign. Either that or i am getting desperate.