Club Mulgoa

Friday, October 21, 2011

KMC

http://www.theaustralian.com.au/business/opinion/in-a-seemingly-parallel-universe-we-have-the-metals-markets/story-e6frg9ex-1226129258018

http://www.proactiveinvestors.com.au/companies/news/21038/kalgoorlie-mining-company-receives-57m-to-date-from-barrick-gold-ore-processing-agreement-21038.html

This stock has a market capitalization that is falling and falling. When I first read about it, it was AUD$25 million. Now it is only AUD$23 million.

If you know how to do simple simple simple arithmetic, the first article created $2 million in one month, and the second article should generate a net of about $4 million for the last month or two. How many investments out there would give you $6 million in two or possibly three months for an outlay of $23 million? The market must be fucked not to see value in KMC or am I blinded by something that I cannot read or see or understand?

Starting in June 2012, it expects to produce 40,000 oz of gold per year. That will generate at least $64 million in revenue before cost at current POG. I don't know what is the debt level for this company though. There is a >200,00 oz of gold mineral resources.

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