Hi LibertyS,The Capital raise was due to Taurus putting a gun to...

Hi LibertyS,

The Capital raise was due to Taurus putting a gun to Kingsgate's head with us having no other access to a finance.
Very shortly after this, we became cash flow positive for normal operations / accounting wise.

Ross is extremely keen to do buy backs because this is the correct thing to do, (a number of us have spoken to him in length).


The company has been waiting on information on exactly how much works are required on the refurbishment and what the exact cost will be. Basically Ross is being extremely cautious. We literally have all the funds we need to pay for this refurbishment from operations over the next 5 or 6 months PLUS $30m in the bank, or said another way, we have all the funds necessary for the refurbishment in the bank and will make 30m profit in the next 26 weeks. ( 350 * 0.5 * 0.85 / 32 * 24 * 7 * 26 * 1500 )


So the question is what do we do with AUD $30m of excess funds. We have attributed USD $2.5 for exploration. I understand we have spent a chunk on mobile plant and machinery. So the AUD $20m+ is just insurance.


This aversion to buy backs from a large contingent on this platform is odd.
It shows a lack of understanding of cash flow and accounting. What is an operation profit and what is capital expenditure. What funds the company has and what profit we are expecting and what are out outgoings. For people without tertiary education in commerce to read and understand financially accounts and make decisions is akin to a trying to a lay person trying to read an arterial blood gas and change ventilator settings accordingly. These people are best suited to asking questions, than professing to know the answers. They often make fools of themselves.


Anyways, luckily the Chairman is a big fan of buybacks and as soon as he is comfortable with the companies position we will start to see buy backs and then everyone will jump to the other side of the fence.