SHOULD Kagara be a tad more transparent in reporting its business affairs?
At the completion of the last quarter Kagara reported net cash totalling $A18.6 million, down from $A28 million the quarter before. Goldman Sach JBWere (GSJBW) had estimated cash would actually total the slightly different quantum of $A42 million.
No problem ... apparently. We see a key difference as the ore mined and transported to the process plant sites (two months supply) as well as the Mungana gold ore 60,400t which has been stockpiled ... we estimate about 40,000t of copper ore and 30,000t of zinc ore for the quarter, the GSJBW analyst said. For the record, GSJBW had a buy on the stock. Meanwhile, UBS was maintaining its sell on the stock, and in reference to the reduction in cash, the analyst at that firm could only conclude that despite reporting relatively low cash operating costs, it appears that little free cash is actually being generated. So, somewhat different assessments of the situation. Some completely unreasonable dimwits would probably claim that this uncertainty is slightly less than satisfactory. We cant help out ... executive chairman Kim Robinson is ignoring us on this issue. Period
KZL Price at posting:
57.5¢ Sentiment: LT Buy Disclosure: Held
