Closed the day a market cap of $36.6m (ignoring the 40m May 2014...

Closed the day a market cap of $36.6m (ignoring the 40m May 2014 options @25c).

The tolling deal with Barrick is only going to produce enough cash to keep things ticking over - probably net $500/oz over 15,000z or $7.5m net. This is not enough to move the share price much.

The game changer is when KMC is producing via its own mill which it is forecasting to be doing by June next year
- 40k+ oz pa
- $750/oz cost
At current gold price, this equals net of $38m pa
(plus perhaps some deals to mill for other mines in area to use full capacity)
Assuming reserves re-rated to 500k oz, this is 10+ year life (with other mines in area to bolt on as well).

This would give KMC a market cap of $100-$150m+.

KMC is saying all of this is only 9-12 months away.
So if KMC achieves targets, share price could be up 3-4x in next 12 months. Share price over next few months will not be looking at Barrick tolling but at KMC's progress toward getting 40k oz pa production going, confirmation of costs at about $750/t and favorable reserves re-rating.