KMC - Kalgoorlie Mining Company

[Joe Blow]

US Nickel (USN) was previously known as Lumacom Limited (LUM).

For previous discussion of this company please see the LUM thread, which can be found here: https://www.aussiestockforums.com/forums/showthread.php?t=522

USN currently have two major projects:

The Snowbird Project consists of two blocks of claims (Kasba and Wendy) comprising 214 km ² within the Snowbird Tectonic Zone, located 625 km northwest of the city of Thompson, Manitoba, Canada. Known nickel and gold deposits such as Nickel King (Ni), Ferguson Lake (Ni-Cu), and Meadowbank (Au) occur within or near the Snowbird Tectonic Zone, interpreted to be a suture between two Archaean crustal blocks, Rae and Hearne, which form part of the Churchill craton.

The primary exploration targets are magmatic nickel-copper ± platinum group element (PGE) sulphide deposits and shear-zone-hosted gold deposits. The geology of the project area is folded and contorted amphibolite to granulite- grade Archaean gneisses, granitoids and minor amphibolites. Gabbros and rare ultramafic bodies of unknown age intrude the Archaean rocks.

The Mid-Continent Project is located in south western Minnesota, USA, and consists of two target areas, Cottonwood and Renville West, totalling 17.8 km ², which are held by exploration agreements (in respect of 29 tenements) and mining leases (in respect of two tenements) with 31 private mineral and surface owners.

http://www.usnickel.com.au

 

[mr. jeff]

"FIRST OUNCES AND GOLD ORE REVENUES OF AUD$2.1M FROM BULLANT
The Company is pleased to inform shareholders that it can now confirm delivery of 10,507 dry tonnes of ore
from its Bullant Gold Mine (“Bullant”) with recovered gold of 1,241 ounces from this, its first shipment of ore
to Kanowna Belle. This represents an average grade of 3.95 g/tonne for the development ore at a provisional
recovery of 93%, with future ore delivery grades expected to increase upon commencement of open stope
mining. At the contracted sale price gross proceeds to the company will be approximately AUD$2.1 Million
(before haulage and processing costs)....Further ore deliveries will be made in coming weeks to Kanowna Belle, with Bullant producing ore at
approximately 700 tonnes per day.
The Company looks forward to the next update as we progress our plans to add rapid wealth for our
shareholders at a time of record gold prices."

By my calculations this means they are producing 83 Oz/day and at lets say $1690/Oz, this is $140k / day or $12.6 m/quarter before costs.

I cannot find cost/Oz but would assuming that it is in the order of $800 that leaves profit of $6m / quarter.

Not bad for a market cap of approximately $ 31M - producing $ 24m / year in profit.

Check these figures, sounds too good to be true. These are the companies that you want when the conditions in the market improve, they are exploring with news flow to come, but they have excellent cash income.
Also I noted that the trading is a bit suppressed today, don't expect that will last for long - read this as my own justification for holding when not going up.

Any holders, good luck.

 

[mr. jeff]

Further good news, supporting cashflow to come from PXG -

"13 September 2011
The Company Announcements Platform
ASX Limited
By E‐lodgement
ORE TREATMENT MoU SIGNED WITH PHOENIX GOLD LIMITED
The Company is pleased to inform shareholders that it has executed a Memorandum of Understanding (MoU)
with Phoenix Gold Limited (ASXXG) for the treatment of up to 300,000 tonnes pa of Phoenix Gold's ore
through the Company’s planned 700,000 tonne pa Bullant Gold mill and processing facility. Under the terms of
the MoU parameters have been established that will allow for a binding “Ore Treatment Agreement” to be
prepared and executed by both parties within 12 months.
Phoenix Gold has a number of advanced mining projects (AMP’s) in close proximity to the Company’s Bullant
operations which they are planning to mine on a timetable that would fit in with the commissioning of the
Bullant mill facility. On the current schedule the Bullant mill is expected to be operational in 2012 subject to a
conclusion of discussions currently underway on its financing..."

KMC seem to be doing well to underpin themselves with cash income to reduce reliance on debt. Seem to be taking a slightly different tack to many.

 

[System]

On August 28th, 2013, Kalgoorlie Mining Company (KMC) was removed from ASX's official list following the compulsory acquisition by Norton Gold Fields Limited.