Ann: Quarterly Activities Report for June 2016 Quarter-MGX.AX, page-44

Management made an interesting statement in the quarterly but didn't elaborate - “While market conditions remain challenging, we believe the coming year represents one of great potential for Mount Gibson and its shareholders.” It suggests that management have plans in progress which they have not yet disclosed to shareholders.

I think that there is a low probability of picking up a mining asset at an attractive price, so capital management seems like the better option. The comment above might suggest that management has other plans.

Either way, I don't see why the major shareholders would be any happier sitting on cash than we are. I am hoping for more clarity when the annual results are announced in August.

As for KI, I expect that to go ahead with a lower capital re-build that lowers strip ratios and increases quality. The BI payout won't amount to much as MGX has arguably benefited from not having to sell into a depressed market, so I don't think is holding up any announcements.