Hello arton,
Hope you got topped-up today.
Gold has had a hit due to rumours (presumably by shorters) that Cyprus
had to sell its 10 ton og gold reserves. This has been subsequently
refuted by a member of Cyprus' central bank and it seems the rumour arose
from a working paper a month old by some junior official.
Once KRM is back in production it should get back on track for 45K+ ozs gold
equivalent p/a within a few months. At current prices and KRM low costs this should
restore forward EPS to 8-10c.
Keep in mind that the plant can handle up to 600 ton/day since the SAG mill was
installed. Shaft development to the Malawi Vein just before the Sept
Talang Santo accident encountered 56.5 g/t AU & 156.6 g/t AG
which is getting up to bonanza levels with other areas averaging 15 g/t AU &
60 g/t silver.
Optimally, if KRM can mine 600 ton/day at these grades it would amount to
126,000 oz AU equivalent p/a. Even half this would send the SP well above $1.50.
Mr Phillips together with John Morris and Chris Start have the know how and motivation to take KRM to its potential and 600 tons ore/day is only
25 ton/hour; or about 10 cubic meters. This is low volume as opposed to
an open pit operation with throughput of 200-300 tons/hour.
My bet is that we'll be producing at least 4000 ozs AU equivalent per month
by June increasing as the year progresses.
The past 6 months has been an ordeal for KRM management and staff and
I have sent them an email of appreciation for their efforts.
There should be, IMO, further good news re the re-opening of Talang Santo within a week or so.
Cheers
Moorookamick
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