Ann: Financial Results Presentation Full Year Jun, page-8

re: Ann: Financial Results Presentation Full ... I think it's fair to say the last couple of years have been a disaster for KCN - some the company's fault and some the obvious result of doing business in Thailand which is why KCN embarked upon its diversification plan.

The previous Thai preference shareholder refused to hand back the preference shares to KCN per the agreement, which prevented the Thai public offering which was expected to more than comfortably finance KCN's expansion plans.

On top of that KCN had to reapply for all its exploration leases in Thailand where it had spent substantial money acquiring the land and had numerous drill ready targets.

In typical Thai bureaucratic fashion, where time taken for approvals is completely irrelevant, no matter what it does to a business in the meantime, while KCN expected approval early last year, KCN has yet to receive permission to continue its exploration on these leases. This put an end to the Thai public offering.

In addition, the grade of ore able to be accessed at Chatree must have become lower than expected ... so the substantial money expensed on the second plant at Chatree has effectively just maintained steady state gold production at Chatree instead of substantially increasing gold production, which was KCN's expectation when it started this "expansion."

Now this second plant is closed for September, with KCN assuming the metallurgical licence needed to reopen it will be promptly granted following all the inspections by the authorities in September. "Metallurgical licence expected after verification complete." From KCN's Financial Year Results Presentation.

Then of course there was the takeover of DOM. Every indication from what KCN has recently reported to the ASX is that KCN is getting on top of the situation, and this takeover looks to have a very good chance of being successful in the medium term, however its underperformance since acquisition has clearly caused KCN significant short term pain.

The result of all this ... despite a record profit of over 50 cents a share, the market, in its bearish attitude towards gold equities, has smashed the KCN share price.

This imo is an overkill ... but that's the market for you. In its current state it is not prepared to accept performance below guidelines given to the market.

So in the Presentation of the 2011 - 2012 Year Results at http://www.brrmedia.com/event/102486/gavin-thomas-md--ceo Gavin Thomas made it clear that the Company is being conservative in its guidelines as it doesn't want to underdeliver again - result - another smashing because of these conservative guidelines.

Talk about not being able to take a trick!