Ann: Half Year Accounts , page-2

There is now an substantial increased risk for investors in Gindalbie to lose their shirts. Read note 1(d) carefully (excerpts below) and KPMG's "material uncertainty regarding continuation as a going concern" statement.

You have been warned by the company and its auditors and this is my last and finale post on this site. Consider yourselves warned.


"At the date of this report the financial position including debt obligations of KML create an inherent uncertainty with respect to Gindalbie’s ability to continue as a going concern and realise the carrying value of its assets, in the normal course of business"

"Under the terms of the Senior Debt Facility, KML is required to comply with and commence reporting
specific financial cover ratios effective on 31 December 2013 and quarterly thereafter. KML did not
comply with the debt service cover ratio (DSCR) on 31 December 2013 and is forecast not to comply
with the DSCR on 31 March 2014. If KML is in breach of a cover ratio for two consecutive quarterly
dates, and one (or both) of which is not waived by the Facility Agent, or cured by an equity
contribution from shareholders within 30 days of notice, this is an Event of Default under the Senior
Debt Facility and the Facility Agent has the right to call KML for repayment of the total loans
outstanding.

"Through a combination of the provisions of the Senior Debt Facility, the shareholder guarantee and
share mortgage provided by Gindalbie to the Chinese Banking Syndicate and the indemnity and
share mortgage provided by Gindalbie to Ansteel, if there is an Event of Default and a call for
repayment by KML which is not met in full, then, prior to KIOP Project Completion which is not
expected for at least the next 12 months, the Chinese Banking Syndicate (or Ansteel) has the right to
take ownership of Gindalbie’s shares in KML under their respective share mortgages. Under the
indemnity provided by Gindalbie to Ansteel, where Ansteel has repaid the total loans outstanding,
Ansteel has the right to recover any loss it may have suffered after sale of Gindalbie’s KML shares
from Gindalbie."