You are exactly right. Don't worry about some of the other posters on this forum. If they are interested in putting all their money at immenent risk of loss, that is their choice.
Don't be fooled by this announcement. This announcement is cleverly trying to disguised its purpose, which is the announcement that the CFO and acting CEO of KML, Mr Sims, has resigned.
Writing on the wall.
KML now trading in default on its cover ratios under its senior debt facility.
Still no news on Ansteel rescue funding. Time is starting to tick really fast now.
Ansteel granted rights to move to 62% of KML in Sept last year, they haven't yet taken up that right. I still wonder why they haven't done so yet.
Chief financial officer and acting CEO of KML resigns. Ask yourself why Mr Sims would walk away from his high paid job at KML?
Mr Sims is a certified practising accountant and would be fully versant with his duties under the insolvent trading provisions of the Corporations Laws of Australia.
KML can only trade for so long on the promise of funding. The directors of KML will need to be confident that the cash flow from the operations will cover the companies debts as they fall due or that there is a significant chance that a funding solution is being obtained to let KML continue to trade.
IMO his resignation could signify that Mr Sims had no confidence in either of the above and his resignation, as pp has pointed out, signals a substantially increased risk that KML will fail and fall into administration/receivership.
SilentO
Please do your own research and if you have any doubt about any investment decisions please seek professional advice.
GBG Price at posting:
6.0¢ Sentiment: Sell Disclosure: Not Held
