I sometimes wonder what influence HC posts have on the SP - not much on large volumes I imagine, but when the price is determined by a few small trades perhaps buyers and sellers are influenced.
Some posters seem to have not understood how the directors options approved at the 2017 AGM worked, and have posted some misleading (ie wrong) claims. There was no cash outlay by the company. If all the options were exercised the company would
receive $16 million or so. But for that to happen the s
hare price would have to go over .75 cents (for tranche one) (or 1.00/1.25 for the other tranches).
Those options cost the company
nothing and are worth
nothing unless the SP price hits .75 within a couple of years.
The cash value bandied about here, to imply huge directors fees, are nominal values required by ASIC based on the assumption that Kin share price is heading towards $1.
The irony is those options are an incentive for directors to limit dilution if they can. They have a huge incentive to get the SP up.
From the explanatory note:
- Catalyst Corporate have valued the Tranche 1 Director Options with an exercise of $0.75 at $0.1133 and the Tranche 2 Director Options with an exercise of $1.00 at $0.1241 and the Tranche 3 Director Options with an exercise of $1.25 at $0.1353. Catalyst Corporate has discounted the value of the Director Options by 30% due to the non-transferability of the Director Options.
Therefore, the implied “value” being received by Mr Dixon through the issue of the Director Options is $723,400.
So anyone who actually does their own research knows that no $700k directors fees have been paid or would be paid. Why post factually incorrect, and rather alarming claims?
Similarly we
knew,
from the DFS, that the water would initially come from Mertondale pit, that power would be purchased from a supplier who would bring in diesel generators, that the mining plan was for the shallow ore, that the build was going ahead before mining approvals were in, and that the Sprott load had no provision for cost overruns. We also know that Goldfields were paid for the Lawlers plant last year - there is no debt there, but we can still read on HC that Kin owes Goldfields.
We took a bet on a bold plan to get a plant running so as to fund necessary further development from gold sales rather than investors. I liked it, but it was unconventional, and risky. I didn't know Don was going to leave, but key staff leaving is one of the risks. I did know that. I took the risk because I was hoping to make a killing.
We knew a CR would be required about now, and probably the SP has been pushed down lately in anticipation.
Anyone who can read a quarterly statement
knew that come late September/October Kin was going to need more working capital. While we are drilling we spend about $3 million a quarter. We could hang on to the 3 million US still owed to Sprott if need be, but with the falling $A that is very expensive money.
I would rather they don't raise the full 10 million straight up. I would rather see 5 or 6 to for now, with the remaining shares ready to be placed once more drilling results from Bruno/Lewis come through.
28% of Kin on sale for around $10 million is going to attract some interest from large investors, regardless of HC posts. Offering the shares as a rights issue, hopefully not all taken up, gives the directors the option of getting a better price for the shortfall shares by placement over the next few months, on the back of drilling results. Lewis has come good for us once before.
(20min delay)