rights shortfall, page-9

I've heard that the shareholders that took up their entitlements and applied for shortfall will have priority over all other comers. That leads me to believe that the shareholders are likely to get all their shortfall application filled unless it was a very high amount.

I agree that there are a few good catalysts in the pipeline that might bump interest up in this stock. However, the company needs to be switched on as cash will be tight until they turnaround the Burbanks operation.

The reason I finally bought into this company after being very dubious about it's prospects was due to Peter Lester becoming Chairman and Pybar being engaged as the mining contractor at Burbanks. The MD's past does cause concern, but I'm reckoning Peter Lester wouldn't being staking his good reputation gained over 40 years in the caper on being the Chair of a dog.

Burbanks is a challenge to mine due to its high grade narrow vein ore folding every which way but loose. Engaging Pybar gives me confidence that KBR is heading the right way. I note that Pybar is going to mine the ore using hand held methods as well.

KDR needs to meet the 20k oz p/a pathway this current quarter and then progress to the 30k oz p/a pathway in the following quarters. If they don't then in 3 months time we can expect another CR. Additionally, they need to meet certain margins as well.

My quick calcs indicate they need a margin of $600 per oz if they only produce 5k oz per quarter or if they can hit 7.5k oz per quarter then the margin only needs to be $400.

So, it will be tight and needs competent operations and excellent management.

Cheers