Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-31

Hi ecker,

Where in the Quarterly report do they state that they have expensed the ramp up associated capex costs? Why would they be expensing capex when they are already experiencing very tight, if not negative operating cash flows?

The quarterly commentary reads very positively but there are some red flags IMO...particularly "Discussions underway with Akara’s preference shareholder, Nucharee Sailasuta, to defer the repayment of a total of 300 million Thai Baht (A$12.8 million) advances for another 12 months." As she is a director of both Kingsgate and Akara and is trousering 12% interest on the loan you would have either hoped that Akara would either be budgeting to pay down the loan by November 25th or have at least already agreed on terms for an extension if required. Also lots of production and sales figures but no mention of AISC for the quarter or forecasts of ASIC for next Q...pretty important info IMHO.

The cash flow statement does not look positive...$0 unused financing facilities available at quarter end and 0.58 estimated quarters of funding available means that they will need to have a big upcoming quarter to avoid having to go back to the funding trough...GLTAH!!!