I would like to think that management is best placed to know...

I would like to think that management is best placed to know what the company’s financing needs are. They have indicated that the company will run out of money before the end of the year unless new funds are sourced.

Perhaps, they are not in such a position as suggested by some posters. I am most interested to know how KCN could conserve much-need cash by cutting back on expenditure, slowing down or even controlling their cashflow or expenditures. If that were the case, how come management did not reveal in the June quarter statements they have the flexibility to achieve this end without a delay to resuming full mining activities?

Furthermore, funds for a working capital cushion, almost certainly, is necessary. There would be a further strain on working capital if an unexpected problem suddenly arose. Such as a temporary breakdown in the processing plant’s operations.

Patience ,especially when it comes to investing in Kingsgate for the long term, is a necessary ingredient. At this stage though shareholders should not have to be patient when it comes to knowing that their company has the necessary financing arrangements in place or will have. After all, it was some four months ago a marginally dilutive CR exercise was completed.

I look at a share price that has fallen around 40% since it announced the CR and some 20% since completion. The A$ gold price is at a high, the company is producing gold profitably and mining activities are set to resume. Yet the share price is languishing, possibly under severe pressure, at a low.

If the financing problem was sorted out soon, it may work wonders for the share price and restore some confidence in management’s capability on the financing front.