We have two massive problems with KGL.The first is the Board....

We have two massive problems with KGL.
The first is the Board. They appear to be working in the interests of the major shareholder and not ALL shareholders.
The second is that the same Board has made no attempt to appoint brokers or financial advisers to assist with financing the company and the project.
We were told to expect the revised feasibility study this quarter and it is now next quarter.This gives the Salim family another opportunity to use the 3 per cent creep provisions or the takeover code and achieve an unassailable position.
The board has made no attempt to promote the company and the project.They do not talk about the likely impact of the increase in open cut
resources on mine sequencing and cash flow.Significantly they made NO attempt to place the shortfall from the recent issue in the knowledge
such a placement would dilute the Indonesians who have increased their holding from 25 per cent to 36 per cent over the past 12 months.
The longer they delay putting out the numbers and doing any marketing of the company ,the more the Salim family can accumulate at these cheap prices.
The market has absolutely no idea of the potential cash flow from Jervois.
It is head and shoulders above every other copper project in Australia.
The open cut ore is worth over $300 a tonne and the all up cost from the open cut would be around $80.So if we assume 80 per cent recovery in the
final price, it results in a gross profit margin of over $150 a tonne at current prices or $300 million a year at a 2 MTPA run rate of open cut ore.
The open cut resource has gone from 18 months in the 2022 study to almost 4 years. This means the expensive underground feed and development can be slowed.
Significantly also they have only partially explored the open cut potential.The probability is the life will be extended further.
This project has the potential to supply a significant portion of the feed required to keep the ISA smelter and Townsville refinery operational.
I think shareholders should unite and refer the Salim acquisitions to the takeover panel and look into a potential class action against the Board
for not protecting their interests.
The two Australian directors would do well to remind themselves they are there to act for all shareholders and not just one.
Forcing dilutive rights issues down the throat of suffering minority shareholders to the advantage of the Salim group without
making any attempt to find another major shareholder or a broker to underwrite any shortfall is contra to good governance
Surely they discussed looking for an underwriter and can show meetings took place.
But then any shortfall would prevent Salim from increasing their overall ownership!
I believe KGL has the potential to be worth more than $1 billion as opposed to its current enterprise value of around $54 million.
The NPV which came out of the 2022 feasibility study was $242 million an 4 times cash flow from the open cut is more than $1 billion.
Why not just offer the project for sale?
There is no logical answer!
And as a footnote the chairman might follow the dress code adopted by the CEO at future annual meeting and stand when addressing
shareholders.