Yes a lot of patience required this year. I never would have...

Yes a lot of patience required this year. I never would have believed we would be sitting at these prices a year ago. We have fallen a lot more than other DRC miners. Primarily because of the mining review. Secondly because of the turmoil in the markets. All of our mines are currently in the DRC. (Perhaps one day we will have mines in the Philippines and Eritrea.) Some of the other miners were shielded because of their size, assets outside the DRC. But all have taken a hammering. Investor confidence in the DRC has taken a beating, and will take some time to come back.

The sham of the contracts review was a pure and simple grab for assets and cash from almost every miner. Pure coincidence that China gave the DRC government US$9 billion. (see Bloomberg article posted last month and a response in the Resource Investor)

Hopefully before the end of October at the latest, we shall have this issue finalised.

We have always known Kulu would have limited operations without a SXEW. Bill discussed that at some length during the conference call. But we are yet to hear their plans for Mutoshi. 30,000t SXEW plant up from 15000t. Where is the extra ore comming from? A new development?

The problems at Dikulushi were perhaps the biggest surprise. We have a very good mining contractor on site that will get us back on track by the end of the year. In the mean time we still have enough lower grade ore stockpiled to keep the mills happy.

During the conference call Bill, Craig & Toby all were confident they would meet our forecast production targets for the year. Lets hope so.

Then a shareholders meeting in September and if all goes to plan, $300 million in the bank.

Even without the problems at Dikulsuhi & Kulu, the contracts review and the market turmoil have all combined to present us with a very sad share price. But there are miners out there who have been releasing good results and news all year, and it has not given them any protection.

Once these issues are put to bed, get ready for a mountain of exploration results and resource statements for Mutoshi, Kinsevere and Dikulushi. We have spent $US16 million this year and have 8 drill rigs operating. A lot has happened we have not heard about.

Right now construction is going gangbusters at Kinsevere Stage II. What we all shouldn’t forget is that in just over a year we will be producing 60,000t of LME cathode grade copper. I also wouldn’t be surprised if construction of Stage III Kinsevere starts shortly after. That’s what I think some of our funds from Dan Gertler will be spent on. 120,000t by 2012?

Hang in there folks. Things will get better very soon.

KKR