i am sorry about negative comments about jb

I am sorry Jason about my negative comments about you and your companies.
Just read the e- mail guys from JB. Nobody put gun to our heads and say invest these companies. All our individual decisions to invest any company.



----- Original Message -----
From: volcano hotcopper

Subject: FW: why that much negativite about Kaboko



From: [email protected]
CC: [email protected]
Date: Thu, 2 Aug 2012 19:33:31 +0800
Subject: Re: why that much negativite about Kaboko

Volcano
Thanks for your interest in Kaboko and your email.
Yes of course I have seen the various discussions on Kaboko and the obvious references to CCC and Okap. Not good reading a first glance.
Kaboko is completely different, it's a start up, different management, strategy and fundamentals. The company has made significant progress in a relatively short period of time, although not as much progress as I or other shareholders would hope - clearly I would loved to have a JORC resource to announce as that would further de-risk the proposition. The Sinosteel transaction confirmed the high grade and quality of our ore. The Noble deal in my mind further confirmed that and demonstrated the potential we do have. We have attracted Noble to make there first ever investment in sub-Sahara Africa. This has taken a lot of work and time and involved extensive due dilignece views Yes initial tranche of just $0.5m done and conditions to satisfy for the additional $9.5m but please they don't put there names to deals or companies that don't go forward and complete, reputationaly far too much risk there. Still in this market I fully expect shareholders and new investors want to see us and Noble sign off and proceed with the $5.5m balance of the first tranche. The market is nervous enough at the moment and the junior and emerging end is clearly suffering.
Disclosure of Kaboko's activities has in my mind been a strength. The Noble announcement set out the key terms and conditions for each tranche of funding and furthermore we are asking shareholders to approve a debt financing and offtake agreement that is rarely if at all done by many other companies. Getting an all in intent rate of below 5% is also a positive. Still lots to do but in my mind we are slowly and surely ticking off the boxes.
Of course Ihave seen many HC posters who have invested in CCC offer Kaboko's shareholders there experiences and I'm sure people value the input from anonymous posts with various agendas who have no such legal obligations as I do myself as a director. A number of the CCC investors, introduced to the company by a tip sheet written by a vet and with no technical analyses whatsoever were promised tremendous returns, and are significantly down on there investment and are rightly unhappy at the moment. Honestly who can blame them, with a share price a fraction of what it was, however CCC is not alone in having a decimated share price, look at all the coal stocks from majors, to producers, explorers and developers, all have been impacted. CCC despite its low share price is still outperforming others in 2012 such as Bathhurst, Coalspur, Coal of Africa and so on. Yes shareholders are looking for reasons but fundamentally and emotions aside CCC is in far better position now than it was 12 months ago. Shareholders are looking for people to take responsibility and yes in hindsight something's that the board have done could have been done differently, but management of CCC or Okap or the various financings or decisions made over the past 12 months are not responsible for similar price falls in other listed coal companies or junior companies as a whole. The market has beaten us all up and we all have to get back up and get the value back into the company.
Okap has caught the attention of many investors in CCC and been out in the spotlight as the devil incarnate. Okap is a service company providing company secretarial, compliance and financial back office support to many emerging resource companies. It is one of many service companies to these companies. And what it does is no different to several other similar companies in Perth - DW Corporate, QVB Ventures, Mitchell River Group and so on. More often than not directors of Okap are involved in these companies but for the most of them are in a minority - just look at CCC where over 75% of the directors are based in SA. Okap has been wrongly accused taking disproportionate fees. All fees are disclosed as related party transactions in annual reports and are there for all to see. Okap does not take fees on finances secured by the companies it works with. Brokers such as Investec, GMP, Cannacord etc assume these roles. There is a clear differentiation of roles. As directors we have disclosure obligations and adhere to these to the max. For CCC for instant Okap has not received fees this past year and in fact I have not drawn a salary for there or received any financial benefit whatsoever, in fact like many shareholders I am over 60% down on my own investment in the company.
The advantage of Okap to Kaboko has been massive. Before when it was URA, they had a full office in West Perth a dedicated company secretary and support staff and a MD and Board that had an annual cost in excess of about $400k. Today the entire Board on Kaboko is on less than the former MD! In my role effectively as the CEO I'm earning less than $65k and have spent more than twice that on market buying stock.
Posters on HC can and do throw mud at Okap and it's various directors, however these directors have been the subject of various due diligences completed by groups such as major French energy group EDF and Korea's state mining investment company KORES (both parastatal companies) who have made significant investments in CCC. In addition Noble and Sinosteel have done there work on the directors as have many major financial institutions such as Barclays and so on. There are very few groups in Australia that have secured investments by such groups into junior and emerging resource companies, so yes it is very frustrating to see the criticism. Happy to take the criticism but at the same time I do feel a fair bit of recognition of the good work that has been achieved needs to be made.
At Kaboko we could have gone out and blown out the capital structure last quarter and raised funds to complete an aggressive exploration and drilling program. Instead we focused on getting the debt funding competed with Noble, as this is non dilutionary and should have a materially positive impact for shareholders. With this now done the company is significantly de-risked and we can look to use debt funds to get the projects more advanced. Let's face it if we satisfy the CPs later this quarter we would have brought in debt funds that if raised in the equity markets would have likely resulted in over 100% dilution to existing shareholders!
Hope to be in a position later this quarter to say I told you so to so many of those many anonymous posters on HC. Each and everyone is entitled to their own opinion and I will live and die by the sword. I would hope that many "play the ball and not the man" but in this market I fully expect investors to be nervous and take it to directors when things don't go to plan.
Yes lots done and yes we've achieved a lot. We've built houses for our workers, built new roads for villagers, received letters of thanks from regional governors and government officials and really hope we can have a positive influence on our communities where we are already providing much needed jobs. At the same time I hope and believe we can provide our shareholders with significant capital growth. The deal with Noble ensures tight management of our share capital and should mean little dilution going forward.
One last point on a comparative basis, Kaboko has performed fairly well in 2012 to other emerging manganese players, SEG, SRR, SPI and so on where in cases over the past 6 months we have outperformed by as much as 60%. Still a long way off from where I would hope we can get to, but realistically we are still early on in our growth and still need to demonstrate a lot to the market.
Many thanks again for your email. Would hope that more actually contact directors to get the full background to what we are doing and what Okap does and doesn't do.
Look forward to hearing again soon
Kind regards


Jason
Sent from my iPad
On 02/08/2012, at 5:46 PM, "volcano hotcopper"





Dear Jason ,

there are so much negativities about Kaboko , Okap and CONTINENTAL COAL LIMITED although Kaboko processing very well recently. Especialy HotCopper Stock forum , some people have very strong idea about you and OKAP. they are warning everybody that nobody should invest any of Okap companies. i was really surprise that after wonderful news about Noble financing Kaboko closed down. Do you have any opinion why investors dont want to involve Kaboko anymore? is it because your performance at CONTINENTAL COAL LIMITED or OKAP involvement or something that ordinary investors don't know?