We Still Waiting Part 2, page-14

Hfguy

I agree with much of what you say about the management and the company but can not agree with you on your comments about the NE project or the need to borrow money via a non recourse loan in order to fund a share buy back program.

In respect of the NE project, unless we know that they have mis-stated the reserve and resource there is no basis to assume that this is a dud project at say, around a $30/ounce silver price coupled with gold at USD1800. I expect the silver price will do well over the next few years (but not rocket to USD100.oz).

Here is a link to what one expert has to say about the silver price



A non recourse loan is defined by Investopedia here

https://www.investopedia.com/terms/n/nonrecoursedebt.asp

Why would KCN want to borrow money to support or rise the share price when the future revenue stream to fund interest payments and repayment of principal are unknown. The only beneficiaries of such a buy back program would be traders and anyone that wanted to sell their shares at a higher price. If you were the lender then perhaps you could sell your shares at some peak at a convenient time and wait for KCN to run out of funds to then rebuy shares at a price well below where you got out. At the same time you would have a legal right to KCN's assets (NE or Chatree, if not both assets).

The timing of any agreement with the Thai govt is an unknown, and if that does not proceed then KCN will need to raise funds to fight the Thais further if the Tribunal rules in our favour and the Thais do not comply with its ruling. So they would be borrowing more funds, and again putting the company at further risk.

So in essence I totally agree with the KCN management in rejecting your funding proposals and I will support them if any group attempts to take over the running of the company, at least until we have finalised whatever the outcome is on the Thai/KCN dispute.

Like you I want to see an end to the long wait, and a higher share price, but not if it means the company throws money around to assist speculators and traders to make gains in the near term while placing the company under considerable financial stress, and destroying value for longer term investors.

loki