Clearly the management has had to make some hard decisions otherwise the company wouldn't survive. Selling no-core assets and reducing exploration costs was inevitable. The high $ is doing no favours either.
Whilst on initial reading it doesn't look good I think that anyone with at least some intelligence would "look through it" and project to the future what the implications are. My take is that Kagara will be far leaner, more efficient, yet still have the ability to ramp up WHEN the metal prices rise and the Aus $ drops to a more realistic level.
I do feel sorry for the people who will lose their jobs and hope that they find relacement employment quickly.
And I also hope that the screaming naysayers put on some calming music and have a nice hot cup of tea.
KZL Price at posting:
31.0¢ Sentiment: LT Buy Disclosure: Held
