Previously you mentioned your margin a/c was at 1.5% over LIBOR. Can you verify that, as I was under the impression that LIBOR (the London Interbank Rate) was predominantly a commercial rate. Is it possible that your's is 1.5% obove the "official RBA rate"?
Just asking.
In any event, the cost of the loan interest is considerably cheaper than the long term cost of capital if they did a massive cap raising and share dilution. It is a far more cost efficient exercise from the shareholders perspective.
KGL Price at posting:
$1.50 Sentiment: None Disclosure: Held
