Thank you Andy for your post.
Good to hear an alternative view amid all this doom and gloom re gold.
Didn't someone say that once the taxi driver began to advocate selling a share or gold for that matter, that that was the time to buy? .
Well last week a minibus-taxi driver was hailing the strength of the Greenback and predicting doom and gloom regarding commodities including gold. It makes one wonder why he was driving a taxi?
KRMis in a very good position now because
-it is ramping up to full production (having being out of commission for 2 years)
-Potential to lift production from 140K ton/yr to 182.5K ( a lift of 30% for $2 mil spend)
-potential to tap the very rich Splay vein before Christmas (now accessing via level 3)
-Cheap Indonesian labour and diesel -All-in sustainable COP of $700 USD.(which will likely drop due to Splay vein grades and a lift in production post the $2mil spend)
-economic UG narrow vein mining techniques -profit repatriated to Aus (low AUD benefit)
-Gold still $1374/oz AUD this morning (was $1390/oz AUD mid July when mining recommenced with the drop in the POG in the interim being mostly due to a strengthening USD)
Our concern in Aus as KRM shareholders in the POG in AUD; not in USD.
With China and India as growing gold consumers with growing middle classes (over 2.6 billion people combined) we can expect increasing gold demand while the current POG is likely to see cutbacks by
the high cost producers (some in excess of $1200 COP)
Cheers
Moorookamick
PS: (Please do your own research and consult a financial advisor before investing)
KRM Price at posting:
37.5¢ Sentiment: Buy Disclosure: Held
