could kmc be a 5 bagger in 2013?, page-4

Yes i recall you were an earlier poster on KMC Alex. Admittedly, my words were a bit misguided saying "no cost." There will always be some CAPEX component as a company develops its operations. In the case of KMC, however, a lot of the existing infrastructure is already in place, including jumbo's, etc ready to be started back up. Considerations of mill capacity, etc will come up once necessary feasibilities are conducted.

In addition to those points, the company still has ~$3m cash, and given Lee, Kwok and Bowman are in at 1c, i believe with their combined expertise and financial firepower, they will be able to progress the operation in a suitable manner without conducting any dilutive capital raising (think about it- why would they dilute their positions further?)

On the subject of the previous tolling operations, Dawes was seemingly ill- equipped on a staffing front and also from a overall company strategy standpoint. What is seems is that it was a very promising asset, but he bit off more than he could chew and tried to launch the company into full- scale production without doing the necessary homework (whilst costs of production were rising significantly). Subsequently, the inevitable happened, they had some teething issues and then found themselves in financial duress.

The structure of the previous raising is somewhat to blame as it did not provide the necessary capital. Combining with this was entering a seemingly ill- advised arrangement with Barrick. The Verde Consultancy arrangement also appeared to be a suspect waste of money. The list goes on.

As for the recent run up, the market cap on a peer basis still appears remarkably cheap. Approx $12m for a company with ~450oz (see the latest announcement), which will rapidly expand with multiple lode structures identified in a highly prospective zone, mining equipment fleet, Nth American nickel assets, etc. One must see the 0.5c level as being burnt investors who were simply taking a tax loss. 1c was the bottom draw recap price where Lee, Kwok, etc were able to pick the asset cheaply.

Mark, Lee is behind SHL Pty Ltd. It is the number 9 top holder of RRL at last check, and was the top holder of PXG prior to the recent capital raise. He put approx $5.5m into the KMC recapitalisation, Kwok put $1m and has continued to buy on market. Very interesting to see how close (esp PXG) is in proximity to KMC...

IMO DYOR.