Importance of choosing the right Strategic Investors (SI) should...

Importance of choosing the right Strategic Investors (SI) should not be under-estimated and should be top management priority to select the right one. In my view, the SI must be financially strong, well established operationally, respectable management/BOD and has strong shareholder base.

As an example of what can go wrong. One listed ASX miner, despite having a SI from China, is facing issues that are beyond their control. Their SI, a listed group, is facing some financial issues and its market capitalisation has taken a serious knock over the past 3 months. The partner is the biggest shareholder of the Miner with a 18% stake and has executed an off take agreement. Whether the agreement can be honoured is anybody’s guess now. This is unfortunate situation and due to the uncertainty, the miner’s SP is languishing.

AVL has announced today a MOU with a Chinese group, a private corporate group, which is relatively unknown. The announcement did not move a needle. Not my intention to down-ramp but this is the reality of the situation.

In the interest of shareholders, KRC must do its due diligence carefully when choosing the SI. In my view, KRC should appoint a respectable/independent Financial Adviser to assist in this important task.

I further suggest this "subject matter" be included in the agenda (capture in the Risk Dashboard) for the regular KRC's BOD meeting.