plan b

The way I see it is that even if they raise 25-50 mill, they are not out of the woods. Whilst the AUD remains above the zinc price, it remains a constant threat.

Kagara at this point has simply bitten off more than it can chew.

The five year plan needs 200 mill.

Here is what I would do.

1. Establish and Communicate Priorities - Budget 100 mill

a. Pay off trade creditors - (50) CHECK
b. Mungana Plant (Zinc) - Complete & move off C&M (40)
c. Herberton (Poly/Copp) - Move off C&M (5)
d. Balcooma (Poly/Zinc/Copper) - Move off C&M (5)
e. Einasleigh (Copper) - Progress development (12)
f. King Volume (Zinc) - Move into production (25)
g. Maitland (Copper) - Progress development (12)

h. AB (Zinc) - Sell or invite partner - KZL to invest JV 50 from ops (has no skin in the game so can't attract partner)

(b,c,d) - Leverage partner strengths to lower costs in the Chillagoe/Herberton region

2. Fund priorities - Southern region hub - Sell for (100) or invite JV partner to invest (100)

Package a-e as one asset sale
a. West 45 (discovery) - 10 mill, spend to date 10-100m
b. Thalanga Plant (purchased for 2 mill to process ore from West 45, Orient, Waterloo and Liontown -refurb cost 10-60 mill?)
c. Liontown - 5 mill
d. Waterloo - 2.5 mill
e. Orient - (discovery) 2.5 mill

3. "Grow more than our business" has to go...

4. Fire Rothschilds

5. Implement a 10 for 1 reverse stock split. Reduce circa 800 mill shares outstanding to 80 mill effective June 30.