KRM

This is the latest agm for my silver mine shares KRM, (which have gone down in price since I bought, but I'm not too worried yet)
Interested to know any investment opinion on them, as I chose them based on zero financial expertise. I liked the high silver content, and the straightforward business of getting the ore out of the ground as a priority.
Have no idea if I bought the shares at good value price, but I do like the company itself.



http://www.brr.com.au/event/frame/89588

 

I will be adding this one to my portfolio, at the moment only adding $1000 per month in total so am spreading my buys quite thin.
With gold and silver.. this one seems pretty good.

 

There is contry risk here but cash costs and dividend policy looks interesting - Ive been having a good look at these guys.

 

Silver Sanchez
I'm actually more worried about earthquake risk. Although I saw there were a few people killed protesting another goldmine on a different island a week or 2 ago. But that's probably a confidence builder for the market. The good police of Indonesia are willing to shoot the locals to protect foreigners raping their land.
Its a beautiful world.

I was going to sell these with a 15% profit a few weeks ago , then got greedy and they dropped. I really want a profit on my first share purchase so I'm going to hope they rise over the next week with this bounce of gold and silver.Then get out and wait for $1.20 or so to get back in.

They fluctuate in price quite alot, so its a fun stock to have

 

I am a holder of KRM through my super fund. What attracted me to this company is that they are one of the cheapest producers on the ASX and the upcoming dividend. For me this is a long term hold say 5 years and with Gold and Silver rising we could see a potential price of 4 dollars per share.

 

I chose it because everyone said do your own research. So i googled high silver content goldmine, or something similar. And this was one of the results. The business model is so simple even I could understand it.

Did you buy it way back under $1?

 

I got in around .90 cents, but have topped up recently. My super fund only allows me to hold 80% in equities only.

 

I think you're on a good one here, but they're all a gamble. I've been buying into gold and silver mines since 2002 and I'm sure I would be at a net loss if I had the heart to do the sums. Meanwhile I could've been on a mining services company or a telco that multi-bagged during that time plus paid increasing fully franked dividends.

In Kingrose you've got a company that has proved itself by proceeding rapidly from exploration to profitable mining. Plus now you have a significant self funded explorer in a proven province. Very can do management. A $14m budget and 12 rigs drilling - that's now a significant exploration arm

If you believe Bell Potter projections you're buying at about 8.5 x earnings forecasted by them for FY12

Anyway, good luck with it - had it on top 5 goldies watchlist for a couple of years but it never corrected enough to tempt a buy. Very attractive stock for a silver bull - currently producing 12 ozs of silver for each oz of gold.

 

finicky have you taken into account their second mine is almost operational?
and how many times earnings is a good buy price in your opinion?

 

Normally 8.5 would be just fine, but I've wasted a lot of opportunity on gold/silver mines. I want an irrational bargain born of a market panic a la 2008 GFC. Gold mines are super unreliable and the P/E 8.5 is a broker estimate. And no - I hadn't forgotten sourcing ore from the second mine, but not sure whether Bell Potter had included that in their calcs.

If this stock tanked due to a general market panic, I would buy.

http://www.presentation-matters.co....h_MS/85th_minesite_mining_forum_Kingrose.html