Mineral exploration is a 3 legged stool - geology, finance, legal.
KLG is weak on finance (couldn't raise much at the last attempt) and legal (so many unresolved tenure and permit issues) and not altogether convincing on geology (rest assured that if Freeport McMoran had been sufficiently impressed with the drill results they would not have walked away).
Words mean little, without license, nothing else matter. Precisely why impossible to get permit extension. Message is loud and clear: foreign investors in mining will be driven out at every opportunity.
Politician believe short term growth in Low cost manufacturing will make country strong like china, Korea etc. Will it last for long before another civil unrest to kick out the rich and wealthy business people.
If history a good indicator, 10 years at most, its in grained in the DNA.
KLG's latest power point presentation (March) on www.kalimantan.com creates a marginally better impression than any of the previous efforts although some key aspects of the company's overall condition remain opaque. Clearly noted on one of the slides is that the 2015 work programs depend on timely receipt of licenses and funding. Problematic tenure and licensing issues were rarely openly discussed by the previous management team. Funding is not yet being transparently presented. The fragile state of KLG's finances is obscured not least because the expenditure budgets for corporate overheads, further exploratory drilling at KSK and the extra cost (several millions)of lifting the Beutong holding from 40% to 80% are not set out in the Presentation. These should be disclosed alongside a continually updated figure for cash in hand. Why should KLG management be coy about the company's cash needs and progress or lack of it on tenure and licensing? These are precisely the issues that potential investors need to be informed about.
...with a hefty hangover after buying at up to 7.9pps. There's only so much averaging down one can do, before realising this share is going nowhere. Can I place my vote of no confidence in the BOD ? I like to think that I have helped a few impoverished Indo villagers (as well as the wealthy prospectors) on the way. Good luck all those still here !
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