Member Info for Daisan

Around now. I suspect they will come on Tuesday. I am not sure that they are going to tell us much we don't already know but it will be interesting to see whether they have moderated their cash burn which is way too high.

Their website says they have resources in the order of that but I can't see whether it is JORC compliant.

Ironically, some holder (that would be you Timeless) posted exactly the same thing in his post. Thus proving the dangers of plagiarism eh?

In the short term the active selling looks like it will cap any gains. Probably long term holders who want to get out having put up with the bumpy ride for so long although 7p doesn't look like much of a chart point. If gold goes down in the short term, which yesterday's activity and most technical analysts suggest is likely, then the current share price may come under more pressure. I expect this to be the case but the chance that it might not be means I am sticking with my original investment. I expect the gold price in the longer term to be much, much higher than it is currently with the target being to break into all time highs at least. If we get there (and I believe we will) then this will be throwing off cash at a rate of knots. Even if we go with the AISC for 2015 to calculate this (bearing in mind the moves to reduce this and that cash costs are more directly related), we are looking at over $80m per annum. That would suggest a share price of many multiples compared to this and considerably more than the broker estimates.

Just in the interest of balance, I'll post all of my post from 12th March that Timeless has copied only the Positives. Positives: Early mover advantage in a location that loves gold Very prospective area for gold (25m oz having been produced historically with a geology similar to the world's major gold locations) Very good local contacts Have not had a history of diluting shareholders since the initial £12m IPO About £600k in the bank based on £750k at 8th December and cash burn Their share of GMSI has a book value of just over £3.2m based on most recently published accounts GMSI should be about to declare a maiden resource Very real potential for significant gold price increases in the next few years Comparable company has recently raised £5.1m suggesting that this may be possible for KGLD Potential for merger with said company makes strategic sense Negatives: Recently removed two significant board members including the CEO to save money Cash on hand will only last a maximum of 9 months In order to progress ANY of their opportunities they will need to raise a considerable amount of cash compared to the market cap so any cash raise will be highly dilutive (unless - see my opinion below) Current share price is below nominal value so unable to fund raise at this share price Their stake of GMSI amounts to approx. 23% (with the potential to increase to 29%) so no controlling interest GMSI does not yet have a resource declared but the target is 0.5-1.0m, meaning KGLD's stake is less than 250k oz Indian bureaucracy is horrendous and has resulted in severe delays in their projects and them burning through nearly all of the money that they had allocated to progress their projects. Despite the current government being investment friendly, not much has changed in the last 2 years Environment remains difficult for raising finance In my opinion: Kolar has a decent opportunity to progress the historic gold mines in the region provided the Indian Government pulls its finger out (there are indications that this may be the case). It doesn't have the cash to pursue this, however. The best option would be to sell their stake in GMSI (presumably after a resource announcement if it ever comes) and use this to invest. It is unlikely that they will achieve book value for this but it should bring in a decent amount. If the Indian government decision is within a reasonable time frame, Kolar currently have sufficient funds to survive.

So you are expecting news on getting finance for Karchiga (initial CAPEX $115m I believe)? Or on selling Akdjol-Tokhtazan? One of the issues on the former is that the feasibility study was done on the basis of copper prices about 30% higher than current prices. Whilst prices are going the right way at the moment, that is quite a difference. The NPV was based on a 7.5% discount rate, which is quite low, so I would suggest that, currently, the project's financials would not be fantastic. The sales process for the latter has recently fallen through of course. News on either would obviously perk this up but they need to start pulling the cash burn back as it is way too high currently.

I can't say I am pleased about it for those invested! As I indicated, there are a range of targets. Unfortunately, the one I trust the most on this has an initial target of $973/oz. I say 'initial' as he thinks there is an outside chance of it going to $800ish (but only a slight chance). I would also reiterate that, believe it or not, they are all very bullish on gold in the long term! It has been smashed today - down $30 as I speak. I think that if it goes below $1180-1200 you will see an unravelling of at least some of the gains miners have seen this year. Below $1100 I can easily see them testing lows. Sorry, I don't mean to be such a pessimist but the last 10 years have taught me to be ultra cautious on these investments. On a slightly more optimistic note, one of the guys I have followed is suggesting that it may not be quite so bad and that he believes miners will be more resilient.

A good update this morning and more indications that the operation is advancing well. Unfortunately gold is being smashed at the moment so the good news is being lost.

Administration costs seem to be running at $200k per month. What the hell are they spending all that money on since they can progress nothing at the moment? Exploration costs are negligible so I am sure they can struggle through for another year with the $5.5m they have.

Difficult to compare the two but the most obvious difference is that Bolnisi is right next to an operating mine with all of the infrastructure in place and they have access to resources associated with the JV company. They clearly want to get this up and running quickly to provide the necessary cash flow to progress the other assets.

I haven't looked in on NMG for a while having been a holder for some time (yes, my average is a LOT higher than this!) but have had a look at the Georgia stuff. I have to say it does look very interesting but I am surprised at how quickly they wish to progress towards mining without the normal rigours associated with that. Of course, there was significant work done previously but even so. It will be interesting to see how it goes during the initial mining.

Ah no! I see. Admin have put filters on both of our accounts! You have got to admire that solution.

Ah no! I see. Admin have put filters on both of our accounts! You have got to admire that solution.

So who has managed to buy some? Price has risen on 15000 purchase.

Have you noticed that all his posts seem to have gone? Has he been banned?

That's because they don't exist on trading platforms yet! I can't find them on HL either

Timeless, As you so rightly say 'I'll post what I want when I want'. All I have done is present a balanced argument. Not once have I insulted you or anyone else. Unfortunately you, and now Dibs, have decided to resort to insults. To be honest Timeless, the reason we tend to bump into each other is that we are both interested in small mining shares. I do tend to research a lot before investing (oh, I definitely invest in companies, but also in other, geared plays) and accept that I will miss the boat on occasion in doing this. So be it. It is when I find someone presenting only one side of the argument that I will attempt to balance it up. I do this even on companies where I have holdings. Spikes are bad news for most people concerned.

On that basis you don't think they understand the positives as well Dibs? After all, they are in the public domain. So why is it that Timeless only posts (again and again) the positives? I at least post both the positive and negative arguments as Timeless can attest to as he copied the positives!

I came back because you plagiarised and misrepresented my previous post Timeless. To that point I hadn't posted on here after I said I wouldn't. And if LSE admin carry out any action associated with your report it would suggest that they are complicit in the misrepresentation of companies to the detriment of other private investors and the insulting behaviour for which you are famous.

I can see the headlines now 'Boss talks positively about his companies prospects shock!'. Wow! All negatives addressed! A company with ONLY positives! If that is the case then they certainly haven't communicated as much to the market. To quote from their Final Results: "Kolar Gold's ability to continue with its current strategy is constrained given its present cash resources and the current equity market environment for junior exploration and mining companies in London, where the Company's shares are quoted" "Any further investment in GMSI will require Kolar Gold to raise additional funds." "Exercise of this option, if reinstated, would be subject to Kolar Gold raising further capital." "In the absence of Kolar Gold investing additional capital into GMSI its shareholding will be diluted further." That sounds like a company that will need to raise money if they want to do anything with their assets. NOTE: I am sure that they have funds to survive for a while but that is very different to progressing operations. I actually think that Kolar have been very open and honest with their communications. They, at least, understand the issues.