Share price down 20% today as I write...what a strange reaction to the announcement of solutions to the Company's known problems! The latest quarterly report left us wondering how KBL was going to solve its urgent cash flow dilemma and how it was going to fix the plant deficiencies leading to such disappointing gold recoveries. So many investors and HC subscribers, being blinded by the rising gold price, have just ignored these problems subsequently. But they had to be solved, and quickly, for the company to survive.
I was worried that the next announcement would have been of a highly dilutive large capital raising or, worse still, the directors may have finally just given up and appointed administrators. But no, they tell us that all known problems will have been fixed and been paid for by October with only a minimum of dilution - a couple of million dollars worth of shares issued at a discount to satisfy overdue creditors.
And then we can start to dream of future ultra profits in this current fantastic environment for Aussie gold producers.
KBL Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
