Some questions I think need to be answered. On the 29th July 2011 the June quarterly report was released and in that it noted that KMC was ramping up production, had increased the workforce and expected the workforce numbers to grow in the Sept quarter. First gold ore was delivered to Kanowna for processing. Only days later on the 2nd August 2011 Alexander Hewlett resigned!! Did Hewlett realize at this point with the increasing cost of the workforce that mining the ore and having it processed at Kanowna was not economical? Did Hewlett raise this at board level? Did the board ignore Hewlett’s advice and decide to continue production? Shouldn’t the board have decided due to Hewlett’s concerns that it may be prudent to have an independent cost analysis done to see if the mine was profitable with third party processing or should they suspend mining operations until they had their own processing plant? I would have thought this would have been done well before this point anyway!! When a Director resigns shouldn’t the shareholders be informed exactly why they resigned? I know this would be very hard to enforce but if a Director has serious concerns about how a Company is being run and it gets to the point where they resign because of these concerns, shareholders have a right to know. If his concerns are raised at board level then it should be recorded in the minutes of that meeting. Something the ASX should look into perhaps! I know if I was made aware that Hewlett thought the operation was losing money and Dawes and Co had ignored his warning then I may well have decided to sell my shares. These are only my assumptions and I would be interested to hear other thoughts.
KMC Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
