I just took a quick look at the quarterly, I will go through it in more detail over the weekend. Some preliminary thoughts:
4.5 mil in cash, and expected cash burn next qtr is 5.5 mil. This IMO does not look good at all, especially when your admin costs are a third of that spent on development. This looks to me to be unsustainable without a CR for more shares soon.
With KDL's volume so low (many days are zero volume in fact) and stagnant share price, I would not rule out the possibility that they may try to pump up the share price rapidly in an effort to bolster the chances of an entity buying more shares ahead of any upcoming CR.
So , IMO KDL's volume and price start to rise in the next couple months be very,very wary. I would expect the current trend of stagnation and price decline to continue into the inevitable, unless they have an extraordinary piece of good news befall them , which given the bearish global outlook for diamonds in unlikely. DeBeers have a flat forecast ahead for diamonds given China's declining jewellery demand, and this month some Canadian producers have taken production hits due to general producer price cutting. KDL will probably IMO face a huge challenge. Management may not help matters either given their recent corporate decision makings that have been well published in the media.
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