LOL. “the numbers really do look impressive.”This sector is...

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sevo

7,080 Posts.

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18/08/22

13:59

Post #: 63191030
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Originally posted by hopeful2: ↑

Teething problems aside, looking at the investor presentation (and previous documents) the numbers really do look impressive. Even at 80ktpa the net $$ after ASIC is over $900ktpa. That equates to $72 million pa!! With debt of $179 million and $21.5 million in cash (plus $22 million soon), the current Market Cap of around $60 million looks VERY cheap. - especially considering the company has an EV of $266.3 million.

I KNOW that the company has yet to prove that it can produce on a commercial scale and that there are plenty of naysayers on these threads BUT if we can get to nameplate and then to 120ktpa for LOM then can you imagine the SP this company will attain? Not to mention the dividends it will produce once debt has been brought under control.

It would seem that the Lenders and the Directors have given the future prospects of this company the tick of approval. Bring on the production in September and let's see what this company can do! I am under no illusions that there is still plenty for KLL to prove to the investing community but the fact that they have got this far and have not fallen to the same fate of SO4 is very encouraging. Onwards and upwards!

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LOL. “the numbers really do look impressive.”

This sector is riddled with presentations with impressive numbers. KLL had impressive numbers 3 years ago when it used one of the highest SOP prices and lowest royalty rates in its feasibility. And they had the lowest costs by a significant margin. But they weren’t alone optimising their financials.

Where are the previous long term SOP price predictions from not many months ago?
And the Aussie dollar is currently rock bottom.

What are the numbers like with the Fx at 0.75 and SOP price at US$575-600?

Bottom line, its foolish to be sucked in by impressive numbers in this sector.

SOI are now x5 from when they announced their finance and equity package to fund the project back in 2019 yet they still generate impressive financials. That’s impressive.

Last edited by sevo: 18/08/22

KLL Price at posting: 5.8¢ Sentiment: None Disclosure: Not Held
9 Upvote

3 Great analysis

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