Ann: Kingsgate Financing Update, page-89

It is most amusing, and rather interesting, that your forecasted financial figures for FY24 include bonuses of S750k for management. After all, they yet again pulled off a Houdini-like act, rescuing Kingsgate from going to the wall. A skill they have mastered to perfection with plenty of practice.

Undoubtedly, you think they think they should be awarded a 50% increase on their bonus from the previous financial year. Your figures, after all, merely reflect your independent view of how you believe things will pan out.

What I do not understand is why Anglo American has been so generous to Kingsgate, allowing considerable deferment of payment of money owing to it. So much so that it has amounted to a sizeable sum owed by a company largely faced in the past with serious financing problems, of which they would have been fully aware of. Big global mining companies are not especially known for largesse. Are you expecting Anglo to be compensated for patiently waiting for deferred payment? Perhaps, our management pulled off a masterful deal whereby payment is yet to be deferred for a while longer, or to be spread over a year or so, or even longer. You may have to revise your figures on this front, which is no problem for you, as, anyway, they are a moveable feast.

I am somewhat curious about your HC sentiment rating of Kingsgate as hold not buy. Yet you seemingly are an investor with significant skin in the game, if the value of your stake is not petty cash for you, and you added quite aggressively to your stake recently.