For the record, and consistently in my posts, I NEVER disputed what Stevie said about the company accounts. I just questioned some posts that were deleted, and questionable, to find out if just in poor taste/humour, or something else? Reasonable I would have thought by anyone, given the content, and the circumstances?
Just took a few posts to get straight answers. Apologies for boring everyone, and I noted the responses.
Stevie was always spot on with his financial analysis, but to me seem to over post at times, but I guess only way you might get your message through, to some on here, as not everyone always takes time to read previous posts, so understandable, however, I couldn't fault his analysis.
However, there is always two sides to how you look at things. Accounting is absolutely about numbers, and very black and white, but it isn't always the absolute on how you view any operation, and never should be. There can be other factors that can't be explained in the Financial Statements, that could/will still make a business viable, in the future, as everything can fluctuate for many reasons.
I guess, very few will understand what I said above, as it takes years of looking at Financial Statements, to comprehend that they don't always tell you everything, or the real truth about an operation. Means people don't always think, or analyse the all aspects of a business. Unfortunately, there is no black and white method for understanding the parameters beyond the financial statements. However, it is always important that you do analysis beyond just numbers on a page.
An entity, always does depend on confidence on achieving results, which KBL seemed to lose very quickly. I guess you can't stop the 'snowball' effect, even if you wanted to.
I worked many years ago for a company that finally went into VA, due to bad management, and successfully traded out of it. It always depends on the creditors decision. It worked out then, that the assets weren't viable to sell successfully, so the creditors agreed to trade out of it, and there were also high profile issues to consider at the time, so that it wouldn't have been a sensible choice.
The trading out of VA at that time succeeded, and the company is still going strong today.
However, that was a different dynamic to KBL, so now will depend on what all the stakeholders wish to achieve, that is a, short term gain, usually a loss, or, future gains, recovering all moneys, so gaining a going concern in to the future. Not a high profile VA, so probably, they will elect the shorter term result.
Oh I forgot, how the stockmarket mostly works as well!!
In this instance, KBL has real saleable assets of some value, so will be interesting to see what the creditors decide. Fire sale, or keep it going? Which makes the most money, in the end? This will depend on when the creditors and all stakeholders need their money returned.
It also depends, on who makes the most money out of what scenario. We didn't get here by choice, but someone certainly got it wrong, or it was planned. Yes I know, back to something odd, but someone should question, as it was too measured to get the end result we now have.
Silly question, who plans to lose money? Someone knows why we all ended up here. Bad management, possibly, but a bit like blaming the cleaner, for something missing in your hotel room, how convenient. What did management get out it? It doesn't make any sense.
However, they lose their jobs too, and anything else promised. How weird, you work for a company and you want it to go out of business? Unless you stand to gain? I actually don't believe that, but it should be questioned.
It is quite possible that management are happy with the result, who knows.
However, even until the end, someone was always buying shares. Why?
My previously mentioned VA experience, was that management was indeed shifting many things, and eventually got caught out, as the business was no longer viable, and it got investigated once voluntary administrators took over.
If the Administrators do their job properly, they should be able to work out what really went wrong, and who made the decisions to get us here.
I agree with a poster here, you should organise as a block if you are note holders, so you have some say, if you can, in the creditors meeting coming up to make a decision. Depending of course, how quick you want an end to things.
Choice is, if the view is short term, that is, we take something now for a lot less, or the long term, where we get back everything, and grow from there.
Given the cut throat environment of mining, I guess, very few would take the longer view. Shame really, however, with a recently upgraded plant for processing and the expenditure paid by shareholders, why would you give it away to someone else for very little?
Someone needs to ask if the Administrators can really demonstrate it isn't viable? If it is still viable, then why not be given the opportunity to trade out of it? Naturally, only trading, with an appointed capable management team that can manage a business mining operation properly, then trading out of the current circumstances could be possible.
Funnily enough, I would like to hear the case of why it isn't viable. All debts are stopped due to the VA. So possible to trade out of it, given the working plant gold processing etc.
Yes I know, shareholders don't have a say, but neither do previous management/directors. It will depend on how cutthroat the creditors wish to be, so will see. Will it be a short term big loss, or a bigger return in the long run? Who knows, and I am not an expert.
As many others have pointed out, don't hold your breath. Business in mining is not always looking to the future long term gains, so probably won't see past anything they can't have in the wallet now, so I already know, all is gone., and funnily enough the refurbished plant will be acquired quite cheaply by someone. How convenient.
How odd, other industries don't work that way, but I can see the sense, as it is here today, and gone very quickly in the mining industry, tomorrow.
However, really depends on how you look at things sometimes. Infrastructure recent expenditure, really shouldn't just disappear into someone else's pocket.
However, being cynical, I already know it will, and we have no say in it.
Apologies for the length of the posting. Thanks for your time for reading. Seems everyone lost. I just ask questions.
It will be interesting to see who decides what, and where the assets end up, and under what arrangement.
Cheers
gsmaree.
KBL Price at posting:
0.2¢ Sentiment: None Disclosure: Held
