Directors can't say they are "confident" about something unless...

Directors can't say they are "confident" about something unless they have good reason to be confident. they can't say in an announcement they are "confident" just because they have the vibe it will all turn out, because investors rely on what they say.

If the proverbial hits the fan, I will spend some time ringing around the class action firms. If any of them are interested, they will seek pre-litigation disclosure from the company. The company doesn't have to provide it, but if they have good reason to be confident, they will be mad not to. If they don't disclose why they were confident, they have something to hide. That suggests to the lawyers it is worth commencing proceedings, which in turn forces disclosure.

If the KLL board did not have good reason in April to say they were "confident" of hitting production targets in July, they should be very worried and intent on keeping the company afloat, because they are going to get sued if not. Anyone who (like me) bought soon after that announcement will be lining up for the class action. Then once full disclosure is provided, the lawyers will line up the evidence available to the directors and what they said over the last couple years. I suspect plenty more candidates for the class action will join the cue.

KLL Board, if you are thinking of taking the easy out by tipping the company into administration, or selling for a fire sale, expecting to wash hands. walk on to the next gig, take note! Your interests are very much aligned with those of the shareholders.

Hopefully the warning is unnecessary and they have everything in hand.