How a demerger and IPO affects existing shareholders, page-45

While I agree with part of what you have said. The issue of demerger and sale are two separate questions that the board would have to consider.

The first point of demerger - from what I can see (as an "expert" that sits on the side lines, not in the boardroom) is to separate KV as an explored resource and moving to an entity that will produce a commodity for sale. Moving from exploration to production brings with it issues of financing, JV partners (if there is not sufficient internal expertise to develop the site through to production), sourcing buyers at the right price, development and construction of a mine site, etc, etc. The second issue/question that may arise is the sale of said site if the price is right. These are separate questions that will have to be managed and decided upon given strategic objectives and/or opportunities.

To me, it would be both logical and strategic to separate production from exploration. This is not uncommon within business structures.

Re the expense of demerging, if the marginal cost of demerging is less then the marginal benefit (gain/dollars) then there is no reason for not undertaking such an activity. I assume that this is partly why the new CEO has been brought on board - undertake the analysis (benefits/dis-benefits) of demerging and prepare and present options to the board. Ultimately the board will consider the options presented, decide upon what they believe is the best course of action and make a final recommendation to all shareholders, presenting all the benefits of undertaking such an activity.

I also think, that given this was raised in the recent releases, there maybe other information, discussions and strategic considerations that the board is not, at this time, able to share with the market (subject to their continual disclosure obligations).

Everything is just speculation at the moment. All of the above is my opinion only.