Ann: Kingsgate completes $46M institutional placement, page-193

You do not know how profitable the first two months ofoperation would be. With hindsight, I would have thought that management wouldhave been foolhardy to have expected much cash inflow from the early days ofoperating this business. That is apart from being fully aware of tricky bureaucraticproblems that may arise.

Do you really think that management is, or was certain, howthe newly refurbished plant would function in the early days of operation, and whatthe gold yield would initially be. I do not think that in their financial plansthey would have risked placing too much expectation, in terms of cash inflow, fromthis business for the first couple of months of operation. Note that in the CR documentationno reference was made to expectation of future profits or cash inflow from thisbusiness, even though it is likely to be a highly profitable business over thenext six months or so, taken as a whole.

Personally, I do not mind marginal dilution,especially if it helps secure the future of the business.

What has disappointed me is the stock market’s savagingof the share price. It looks like institutional investors are now calling theshots.

I do not ignore how the stock market receives major specific company developments. Do the big players, with a range of analysts at their disposable, know something that I have failed to see? Or are they merely manipulating the share price, assuming they can?

As stated previously, time will tell if themarket reaction is appropriate. Market sentiment and psychology can be fickle,at best.