You would be correct if they were using the same reporting...

You would be correct if they were using the same reporting system as occurred in their 2017 annual report which showed a line for cash and cash equivalents (basically cash on hand and bank deposits at call), while bullion was included within their Inventories category (similarly to what TIE just did in their half year report). But perhaps someone may wish to confirm this with the company and find out their current bullion position.

I wonder if their cash/bullion position is inflated by a hidden growing level of accounts payables, and if there are some significant outlays to be made by the end of this quarter (eg in relation to borrowings/capex or the NE project).

If they can start processing some of the stockpiles with plant 1 (once refurbished) then total gold production and hence revenue would be higher (but perhaps not to the extent that we would like since they are constrained by the number of unused leach tanks they have left to incorporate in the production process.

This ramp up is a slow and painful process and the company is doing a very good job in extracting the maximum from its exiting functional plant - better than what I had imagined. Obviously KCN is and will remain capital constrained so progress will remain slow and the company basically can not afford for any mishap in its operations. A buy back at this time would be viewed as a fake move since KCN can not sustain it in the face of determined shorting (to the extent there actually is any). I certainly do not want any buy back program until it has generated a $25-30m buffer and repaid its loan.

RSK had better ensure that the TAFTA fallback stays in place for a few more years and extracts some futher concessions, especially in regard to significant reduction of the onerous royalty levels set for gold preoduction.

GLA.

loki