IKN

…he’s a Legendary Legend in Australia as well. Check out the bit on Excelsior Gold at the bottom of that linko.

UPDATE: IKN Nerve Centre is informed that the above link is now behind a paywall (it wasn’t earlier when I clicked through), so just to get IKN into legal problems and also provide its loyal and extremely physically attractive readership with the goods, here’s a paste-out of the bit I was referring to earlier:

 

Excelsior Gold (EXG) 11.5c

The
Kalgoorlie gold hopeful tracks its shares against the Brent Cook Life
Cycle, which graphs the typical share movement of a resource junior from
exploration to development.

Brent Cook, seeing you asked, is a well-known northern hemisphere rock kicker and investment guru.

According
to the Utah University alumnus, valuations surge in the pre discovery
phase, only to sag and enter an orphan period as the speculators quit.
The shares then revive in the development/start up phase as institutions
pile into the play.

Excelsior’s
share movements neatly fit the template, having gained favour on first
output from its open pit Kalgoorlie North Gold Project

Size
wise, KNGP is no Super Pit. But with the Aussie dollar and production
costs (including diesel) moving favourably, lustrous gold plays can come
in small packages.

Excelsior
chief David Hamlyn says KNGP’s attraction lies in its proximity to
Norton Gold’s underused Paddington mill down the road.

Exelsior has struck a short term deal to supply the mill (now owned by China’s Zijin Mining) with 650,000 tonnes of ore.

“Our dirt makes the same margin for them as their low grade stuff,’’ Hamlyn says.

“It makes economic sense for them to treat it and it makes economic sense for us to supply it.’’

With
a skinny complement of 15 staff, Excelsior started mining in November,
with a “base case” calendar year target of 29,000 ounces.

A planned underground expansion could expand this to 50,000oz.

Current
reserves of 296,000oz won’t exactly have Newcrest or the nearby
Northern Star quaking in their Blundstones, but Hamlyn is confident that
a modest $1m exploration effort will unearth further riches across 22
target areas on the tenement (only seven have been tapped so far).

On
numbers spied on the back of a Palace Hotel coaster, 40,000oz would
generate annual free cash flow of $12m, based on $A400/oz of all-in
costs.

We hazard a spec buy.

Gold remains the one bright spot of resources and since when has Brent Cook ever been wrong?

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