Why would anyone give another $10 million, to a board that has put the company $7 million in debt and caused a gold mine to go on care and maintenance (in a US$1,700/oz gold environment)?
Would you trust this board with that new money?
Why have no members of the board come forward, and accepted responsibility for the virtual bankruptcy of the company?
Why have no members of the board done the decent thing, and offered their resignations?
Have none of these things have taken place because all of the board, and the former MD, want to continue running this company, with more of your money? Where is their honour? Does the current board have a penchant for selfishness and greed?
Why will no members of the board put their names to ASX announcements?
I hope that Roger Kwok is not a naive and good and decent man that this group of artists are also planning to pilfer for their own benefits.
I also hope that if Mr Kwok is underwriting this recapitalisation, he is strong enough to insist on it being done only if ALL members of the board are replaced.
Mr Kwok has been emailed with this question, together with the suggestion that significant groups of retail shareholders will refuse to take up the recapitalisation options unless ALL the board are replaced, however, I do not expect an answer (in the near term).
There is no evidence to believe (as yet), that the board of directors is pursuing the recapitalisation with the best interests of retail shareholders at heart.
We have had no heart-felt apology from any directors, and no director correspondence explaining the real cause of the current situation, and no director signing ASX announcements, and no director interviews.
Are the directors continuing to take payment while the mine is on care and maintenance?
Should all of the current directors resign?
Should all the director options and payments be cancelled?
Should all monies paid to directors over the past year be re-paid to shareholders, and director (or director family) bank accounts and real estate properties held as guarantees for this?
One very interesting element to date, is that we have not seen any group of investors who hold more than 5% of the company, call for an EGM, or put forward a group of alternate directors. Why is this?
Is ASIC, or the ACCC, or the AFP, investigating KMC? They have been asked, but we do not expect an answer.
What kick-backs (if any), will the directors be getting from the recapitalisation partners for convincing retail shareholders to sell down their holdings for one (1) cent a share?
There are so many questions.
Gw
KMC Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
