Ann: Kingsgate completes $46M institutional placement, page-176

Rattlehead. I am disappointed that youhave not bothered to attempt to answer any of my questions. Actually, I wouldsay I have experienced disappointment not frustration about the CR.

Let’s look at an important fact first.

The stock market is rattled by theheavily discounted CR despite it having only a marginal dilutive effect. Todaythe management team had to suffer the ignominy of the share price closing belowthe price the shares were placed at with institutions.

Looking at your question from adifferent angle, I would like to think that, if I had been part of themanagement team, then the company would not have found itself in a deep,financial, funding hole with little time to dig itself out of. I certainlywould have made sure that there was no chance of an embarrassing rollover ofthe Taurus loan and its associated costs. Assuming, as your question implies,that it is true that the company had no alternative escape route.

At this stage, we simply do not know. Perhaps,as events continue to unfold quickly, we may yet have an improved understandingof what the situation really was.

Interestingly, two posters responded immediatelyto my initial post in response to your question.

With respect, Fitzroy, I think youranswer with regards to a two-month delay (permission for Chatree to operate) isnot that convincing. I would have thought any funding plans would have been sufficiently flexible to incorporate bureaucratic time-delays,not unexpected in Thailand.

My new worry now is that the oreprocessing operation may not be that profitable in the months ahead. Is thiswhy the equity presentation showed no future income from this activity? Arecent post from Expat raised doubts about the ore recovery yield andprofitability.

I thought, I hope not mistakenly, thatKingsgate now had so to speak a bankable business

If Elzephyrus’s suspicions arewell-founded, then we can thank our lucky stars that they did not go cap inhand to the market for fresh funds earlier. I shudder to think what the shareprice would be now.

Speaking of frustration, I have greatdifficulty in editing my posts on HC. Sometimes the window of opportunity isnot open, or shuts unexpectedly quickly.