Ann: BBY Research Report, page-6

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w27

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05/10/14

17:44

Post #: 14077761
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Originally posted by amok ↑

I think the recent BBY report was fairly unbiased and details the prospects of the company fairly well.

As they state " As it stands this is not a compelling story – although the pre-tax and financing NPV is positive, the results are very sensitive to
changes in key parameters including metals prices and exchange rates, largely due to the relatively low grades and short mine life.
However there is significant potential, with minimal drilling, to significantly increase the reserve base, which would potentially result in a much more robust investment case. The Company will be looking at all options in the upcoming PFS, due to start in early 2015."

I think the lack of info regarding debt payment and possibility that a CR early next year will be needed for funding of CIL and Pearce are the two things holding this back. Current debt is far less than that of neighbouring AMI, so perhaps there is some wiggle room to get another offtake partner lined up to provide funds...Glencore to the rescue? Who knows?

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Amok,
I could not get the whole BBY report as I am not a client and saw only the short summary on the KBL website. Was the comment about potential to increase the reserve base about Mineral Hill or the Kimberly lead zinc and silver? I would have thought that the reserve base at Mineral Hill is now pretty substantial and given their drilling success recently I am not concerned about reserves at Mineral Hill.

KBL Price at posting: 4.4¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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