"but watso thought that the company had already bought something."
Well that is what they told us in Annual Report and previous announcements.
Some equipment already transported to the site, other being refurbished prior to installation.
I am pretty sure that the cost of the processing plant was being estimated around $12 mill at the time I got into the stock about 3 months ago.
That is why everybody is mystified by this $35 mill intended borrowing, that is 3 times the figure previously bantered and 150% of current market capitalization.
The one conclusion offering itself is that the current mining, trucking and processing operation is loosing money hand over fist and company needs money not only to pay for the processing plant but also to pay their workers and running cost in the mean time.
If the shareholders could be convinced to fork out a lot more cash, there would be no debt, no interest and repayments, so any money left over after production and on site processing costs could be called profit. That profit would be couple years away at least, I would say, given that only stage one received the necessary government approvals.
Hardly rapid shareholders wealth IMO.
If the operation is not making any money ATM, any potential decline in price of gold could jeopardize the whole project even with free capital for the processing plant.
Company needs to come with comprehensive financial plan clearly stating costs and assumptions if they expect investors to part with their hard earned.
I am currently overseas and do not know if there has been any approach to shareholders by mail.
From the gist of the posts on this thread it appears that some stock brokers are approaching their clients, so it might be a private placement but I have not seen any official announcement to ASX as to terms.
I suppose it will all be revealed in fullness of time
KMC Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
