Paul I was looking over KGI yesterday, looking for a small producer....
It looks like KGI is figuring operations to make a profit soon. Frankly I was surprised they were not already profitable....They reduced operational loss from millions to less than 1 million. That is pretty good but they are still losing money....do they need $500 gold to be profitable? If so this is high risk.
Operating income before royalties, exploration and off-site general and administrative expenses of $375,000 compares with an operating loss of $4,941,000 in the second quarter of fiscal 2005. The net loss for the quarter of $901,147, including exploration expenditures of $648,100, compares with a net loss during the same period of the prior years of $8,886,037, which included $2,908,633 in exploration costs.
Looks like they stopped exploring and saved a major amount of money.....but is this a wise move?
Reduction in operating costs to $174 per ton in the second quarter versus $256 per ton in second quarter of fiscal 2005.
Ok mining is cheap enough, especially now.
Our operating costs decreased significantly in the second quarter, and will go below $140 per ton during each of the next three fiscal quarters
This looks pretty good with $500 gold. If they are not profitable next quarter something is wrong I think....
new.stockwatch.com.
Any comments? Anybody?
Wayne |
