Because the government only has two options. They pay for 20%, in which case they may prefer these delays; OR
KGL bear all upfront costs, and loan the government 20%. They then pay KGL back from free cashflows.
They delays are harmful to short term shareprice/confidence but should have an effect longterm. It is concerning that talk of changing royalities and shifting the goal posts. We are low cost, so it wont hurt too bad but that is the problem with these riskier countries. Things can change suddenly for no reason.
But I guess Australia weren't much better with the proposed mining super tax.
KGL Price at posting:
$1.45 Sentiment: Hold Disclosure: Held
