Ann: Capital Raising Update , page-26

My glass is half full.

Was the rights issue a success? IMO Yes.

More than half of the shares were taken up by shareholders in the absence of significant discount or an earth shattering announcement. I don’t think success should necessarily be measured solely on take up percentage.

Did management believe that the result would be better than it was? IMO Probably not.

They’re not bunnies – they even advertised a ‘shortfall announcement’. Without the killer ann or the discount what percentage do you think they would of put on people that are 1) happy with their current exposure 2) unable to raise the necessary capital and/or 3)not interested?

Was the raising done in the best interests of shareholders? IMO Yes.

Discounting would have meant more dilution to get the necessary funds. Also the bigger the discount the more attractive it becomes to the traders and the SP suffers as people exit with short term profits. I think a majority of the shares have gone to good hands and before too long it will be reflected in the SP. (Don’t be surprised however to see the sophisticated/institutional allotment dumped on market weakness – it’s just the way it goes)

Does the result of the rights issue show that KEY is bigger than just its 20% stake in KN#1? IMO Yes

Several posters haven’t held back their disappointment regarding the Kiliwani situation, and that’s fair enough. But even though it’s a potential company maker, KEY mgmt are not resting on it and are actively pursuing ways to find the next potential company maker. I’ve held shares in a certain iron ore junior for a few years now, and in that time they’ve had several great discoveries – but they don’t always work out for various reasons. (Thankfully one looks like it is going to!) KN#1 is the brightest light for KEY at the moment but that’s not to say that the same team that hooked us up there can’t do it again... I agree with Ken Russell, the result was a vote of confidence. Sit back and wait for better timing, or get on with it and get the job done?... I’ll take the latter.

On the subject of KN#1, it was suggested that it’s possible the seismic survey results were not going to be great and that’s a reason for the timing of the capital raising. By that token one might speculate that the Aminex raising was oversubscribed because the results are good, no?

I took up my shares. Luck to all.