I understand your frustration at trying to find solid facts about KRY and not rumours, half-truths and innuendo. Management of KRY is also guilty, in my opinion, on not doing a good job at communicating with its shareholders and the financial community. For example, no research arm of a brokerage firm will speak up at this time.
This being said, the last paragraph that you allude to does not state the source of the opinion. I doubt that KRY management was quoted. The last few lines come from PDG. The Financial Post has also in the past, as now, provided its own interpretation of matters, with a favorable bias towards PDG.
The Las Cristinas dispute is not an easy one to follow and understand. This is why there are so many lawyers and other professionals involved! You are correct in stating that Las Cristinas is the most, if not the only, important prospect that the Company has. Without it, KRY is worth very little.
The delays in the release of the Court ruling, as well as what exactly the ruling will be about (ie. followed by trial or whatever other procedural steps) indicate that there is likely a strong political ingredient to be added, and that not everyone knows what is going on. With summer coming up fast and electoral campaigns in full swing after the summer, the risks are rising. Added to the growing opportunity cost and the general market risk, there is some cause for concern. This is why KRY should only be considered a speculative stock and treated as such in a portfolio (hopefully non-retirement and non margin funds).
I hope that the $15mm quoted represents a true investment and not an expense. Should the Supreme Court fail, then KRY survival would be in doubt.
I know you are looking for clarification and reassurance. Unfortunately, this will be difficult to come by. This is the nature of a court case. If things were easy, we would not be before the Supreme Court! KRY does not want to give out all the details of their strategy, so it is a matter of trust. Do you trust management's view that they have a fair chance at securing Las Cristinas 4&6? Those who hold shares in KRY should know why they are in and the risks involved. |
