A couple of quick notes. - FYI Proactive Investors are paid infomercials - The register has increased 2.3x not 3x (that is still terrible and I LOL that the argument that its not 3x but 'only' 2.3x) RE: Ann Report - An emphasis of matter opinion is common in this space - The $7.1M loss includes $3.2M for impairment and 900k for options which are 'accounting' non-cash values - $4.1M was raised during the year of which $2.3M was spent on exploration including acquisition costs. - Actual cash payments to suppliers and employees totalled $1.8M so cash payments to directors (and their associated consultancies) would be less than this figure. - $1.6M in loans incurring interest at 10%pa are due on December 31, 2012 - Share issue costs of $700k were incurred, interesting that they have not disclosed the allocation of these costs across the various raisings - 300M of the options are priced at 3c so well out of the money atm RE: Celtic Capital - the issuance price of 5,514,706 shares equates to around $85k, presume the 5M options also issue are worth $15k so say $100k in issue costs = 10% fee up front - In addition Celtic take the debt back as a convertible note with the ensuing shares priced at 80% of the 10day VWAP. Sweet deal for Celtic
Summary - I wouldn't buy this
KAB Price at posting:
1.6¢ Sentiment: Sell Disclosure: Not Held