expectations mark 2 , page-123

Hi Ralph,

If Nkwe needs to raise $1million or even up to $2-3million I believe they can do it.

If the discount factor is large enough then it can be done. Imagine if they would do a placement at 10-15% discount to the last traded price and say give a 1:2 attaching option with 2-3 years epiry. If investors can see a 20-25% short term profit then they will put money out. Remember that not all are long term investors. If you cannot get money from long term investors and you are desperate then you look at the traders. This would not be good for the share price after the placement but better than going into voluntary administration and lose everything.One company that is a dog that has been going down this path is Marion Energy (MAE). There are many others like this on the ASX too.

On the other hand I do agree with you that there does not seem much on the horizon in regards to "something huge". If I am wrong then happy to eat my words. If "something huge" does eventuate then its great for shareholders (especially to those that has had a much higher entry price than the last share price and those who has been holding for years and years) so no complaint from me.

Since April I have been tipping that Nkwe would be trying to raise money through a placement. Although to date they have not but I am still happy to stay on the sidelines. One thing the management may try to do announce something positive (but hollow fundamentally) to try and get the share price over 35cents and get as many options to be converted. I can see that whenever NKP has a green day there are many here who will jump up and down suggesting something positive is in the pipeline. I am assuming that NKP (or Genorah) is thinking along these lines. There are about 59.5millon options exercisable at 35cents, assuming just a quarter is converted then this has raised $5.25million. If they cannot "spin" some announcement to get the shares over 35cents by August and no options are converted then I can see NKP going straight back to the market for more money.

Personally all this BFS delays (over 2 years now) indicates that Xstrata deal is likely gone in the short to medium term. A BFS is not price sensitive to me rather its only an indication of how profitable a mining operation can be. BFS numbers always seem to blow-out when mining commences...just look at all the iron ore hopefulls like GBG, MMX, GRR, GWR, ARH, SDL etc...all these guys keep revising their numbers up and up over the last 3 years and none has even started to mine their "jewel assets yet". I do not see why management would not want to release the BFS (unless the numbers are not that great and the company does not want to release it). All this "BFS Optimisation" to me does not cut it. If they have all these scenarios then make an announcement in regards to different scenarios. If they deem the "full BFS documentations as too sensitive for release" then just make an announcement where you just summarise the key points of the BFS under different cirsumstances.

While I disagree that Nkwe cannot raise a small placement and Voluntary Administration is 95% chance in short/medium term, however I do agree that there does not seem to be much on the horizon of NKP of "something huge".