broker opinion on kmc

Where the company is positioned now:



We believe the operational changes are necessary for the company to stop the continued shareprice depreciation and get the company back on course. This will involve the company being suspended from trading as it looks to reduce its workforce and works on a number of recapitalisation options for its project and asset investory. This will allow them to conserve their existing projects and assets, including:

è More than 300,000 Oz at 3.39 g/t head grade, incl 201,400 oz at 5.07 g/t at the main Bullant Project.

è Assets with a carrying value of approx $12.5m



Ultimately, this move will allow the company to refocus on getting on its own feet without being squeezed by a bigger player like Barrick. The company will remain in suspension while we await details of its next move, which could be an opportunity like a tie in with another player.Ultimately the company has good supporters with Chris Daws the Managing Director holding approxiamtely 10% of the company as the main shareholder, and very interestingly Peter Bowman, who is also holding around 8.9% (having taken up another 2m shares at 8c as of 2 weeks ago, indicating his support and taking his total to 8.89%. Bowman is involved with Mill Construction in the Kalgoorlie area, so he clearly has belief and sees opportunity with KMC’s goal to build a 700k tpa Mill. BBY have also been ongoing supporters, having worked with me on Excelsior Gold (EXG) last year.