announcement out, page-13

Why then are the board recommending the offer?

My thoughts are that in the absence of GEM as a buyer KIM continues to burn cash and even the board have capitulated.

If the board saw a short to medium turn turnaround of

a. costs lowering
b. output increasing
c. margins increasing and,
d. the currency improving to assist the above,

then they would certainly be batting harder for shareholders in terms of not recommending the bid etc etc

Its clear that this company needs cash - the 10m line of credit offered by GEM provides that and given their war chest of 500mil AUD - they have a stronger balance sheet they can use to deal with the issues currently beingcreated by Ellendale