King River Resources Ltd T.KRR.W

Average closing gold price for Q2 = 1991$US

[Farquar]

So, this 1991$ average is after 51 trading days for April, May and up to June 12/23...

Krr's average sale price for their 36,150 ounces sold in Q1 was about 1877$ .. The actual average closing gold price for Q1 was 1890$.. but 1877$ is still 114$ less than Q2..

There was  approximately 3700 ounces not sold in Q1 but carried over and probably  sold in the first 2 weeks of April when the price of gold hit 2050$ or so for a couple of days..

Getting back to that 1991$ average gold price for Q2, this is still a very good average , in fact will be a record average price for a quarter ever in the history of the gold market...

If Krr produces another 40,000 ounces and sells all of it in Q2 and if they sold that 3700 ounces from Q1 as well, we are talking sales of approx. 43,700 ounces..

Let's say the average gold price ends up at 1990$ and let's say the AISC is 1150$, then the gross profit is about 740$US per ounce x 43,700 = $32,338,000.00 US or $43, 232,000.00 cdn gross profit.. not bad at all...

Krr might add a few million dollars of cash to their bank account this quarter, unless of course they buy a lot more millions of dollars worth of new mining equipment...

I think Q4 will be the quarter where , if the price of gold is over 2000$ , the third vent is completed and ramp #2 is fully functional , that Krr will post huge profits and cash flow.. Q4 might be a period of time where krr is no longer spending any more tens of millions of dollars for infrastructure and so we could see a huge accumulation of cash in the bank as it will just pile up .

The second half of the year is looking very promising for Karora...