KBL (ASX) Ann: Appendix 3B-KBL.AX

Originally posted by Black Cans ↑

If you have been watching from the sidelines you will have noticed two facts.

One, this company has lost nearly 100% of its market vale since a high of 37c in 2011. The trend has been downwards since this high.

Two, this company continues to "raise" money to pay the bills for a project that is reported or promised to be profitable.

From these facts two conclusions can be drawn.

One, the promises of management keep sucking in buyers. At the current rate, KBL will be non-existent in the next 3 months unless there is a dramatic turnaround in company's spending habits.

Two, this project is not profitable based on the current management structure and production profile of the mine site.

I do have one question, why isn't the underground currently being developed/mined?

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I didn't have my eye on this company when they were mining underground but i thought from what I had read that the underground became marginal once the metal prices collapsed.

Make no mistake, if this company pays off it's trade creditors and Quintanta put no short term pressure on the company then it is going to be a good pick-up for the bond holders in Feb 2017. The lower the price goes the more it plays into the bond holders hands.

I keep trying to find positives in this story and every path i follow leads to a dead end i.e.
Is the company planning an acquisition?
If they were they would make an announcement and raise money at a higher price.
Are the production figures higher than we know?
If they were the company would make a release to allay shareholders concerns and keep the share price buoyant to that they can place shares at higher prices.
Is the company reducing debt faster than we know?
If that were true, why dilute shareholders for the sake of repaying debt 2-3 months faster than planned.
Is development of Pearse North progressing faster than we know?
Again this is a company that advises the market that they have poured 60 gold bars so if they had anything substantial to say, we would have heard it by now....

The best thing that could happen to KBL shareholders is an all scrip offer from another company that has the cash to pay down creditors and in the process ~$13m worth of debt to the bondholders gets wiped out....I wonder if any other company is game enough!?