It is probably best to try and see the wood fr0m the trees.
I’ll try help out.
This has been a litigation stock. We will not know how well or badly management has done until settlement is finally finished, but that may take years. Currently the company would be mad to relinquish the claim as we are sitting ducks and Thailand (bank, DPIM, Refiners, etc.) all mess us around greatly.
As is stands, the compensation received (import tax relief, tax credits, SPL’s) are completely inadequate for what happened to the company. We have probably spent $150m and diluted the company on at least 3 occasions. (Investec, Taurus, Cap Raise)
The company needs to secure a royalty discount or other non-cash compensation, to the tune of $100m. Then there is room for a bonus. Gibson talks of restarting like a win. It was either restart or ruin for Thailand. In the background Thailand were shitting themselves that the award would be taken. If we are indeed to pay Zurich, then we need more than $100m and if we do not get this, no bonus is acceptable.
As soon as it is feasible, the company needs to spend every single cent that isn’t used on exploration for a buy back. We need to get back under 200m shares. Many people will give up their shares (60m shares) on the route to $5 with 200m shares on issues over 2024,2025,2026.
We have an amazing asset that may very well produce free cash flow of up to $150m pa 120k * Aud $1,300.
That’s the good news. If they just mine and buy back shares and prove us up to over 20 years life of mine and gold and silver run. Do not be surprised to see $7 a share if we are under 200m shares.
The bad news is Jamie Gibson.
He is not a competent CEO and HUGE conflict of interest exists. He has basically no shares and is not aligned with shareholders at all.
Zero of his package are share option far out of the money, which is what you want. Pay him peanuts and give him a generous 250k shares at $4, $5, $6, ($3.75m) and see the behaviors and choices change.
Do not give him $250k from borrowed cash when the company can barely walk properly. DISGUSTING.
Jamie Gibson has changed from a nice guy chatting to people on the phone to a self-interested “CEO” who thinks he is now better than everyone else. He is all over LinkedIn like a rash. You must see, that while he is promoting Kingsgate, he is also promoting himself. Very odd as we shareholders voted for an up to 50% buyback. So there is zero benefit in relentlessly promoting Kingsgate as it just makes the buyback price higher. There is a crossing of wires here and it indicates lack of strategy and incompetence. Note, the Zurich and America trips were ok due to the need for a loan and to sell NE respectfully. All the rest are utter rubbish. Gibson should be in Thailand sorting the company out. He is not. He is out promoting himself.
Then more bad news. Talk of Laos is scary. Talk of a Joint Venture in South America is very scary. NE is a dog; we need to get rid if it. Some very uninformed punters here think it is a good idea but have no clew what they are on about. The massive distances, the electricity and water issues, the huge costs involved. All ignorant to the massive spike in inflation and risk in South America, not to mention horrendous time difference and currency issues and risks. All they do is look at the sliver price which is like a yoyo. How can you Cap ex over $250m with a volatile price like that? Sliver could go to $50 and be back at $25 a month later. If they do anything but sell NE ill sell my substantial holdings in KCN.
Further to all this Jamie Gibson has no backbone. He is a people pleaser which means he will end up disappointing everyone. He won’t stand up and make a decision that he believes in. Partly because he is a coward, partly because he is a people pleaser and partly because of his self interest to retain a CEO position and the cash that comes with it. What this means is expect something odd. Expect Buybacks and a dividend, he will try do both to keep both camps happy, even if the SP is low, the only correct thing to do is buy back stock. He will also be aggressive in perusing some other asset. Ross has 5m shares and needs to IPO Akara or sell the whole of Akara to get rid of his 5m shares. Jamie has no shares and wants a job. There is not enough competence in the business to acquire, build and run a new venture. I can assure you of that. So what do we expect in the years to come?
All I know is I want $5 plus, purely because it is worth that much, but it is what Jamie Gibson does that will make or break this company.
That is the WoodFr0mTrees.
(20min delay)