Ann: KRL and Bayan update DD and completion proce, page-22

re: Ann: KRL and Bayan update DD and completi... My calculations were just based on the figures used in the article, so I'm not sure how accurate all that is. The guys selling the tenements also happen to be involved in KRL so I suppose you might ask whether the transaction is really in KRL's best interests or was a mechanism for everyone else to make some cash. I don't know the answer to that its just something that has sat in the back of my mind.

yes it is a good deal for Bayan but I'm sure the guys at the helm of KRL will say it is a good deal for us too. We are getting the balance of the Pakar tenements that we did not already have rights to, in exchange for scrip rather than cash. Scrip is a good way to do deals particularly in the current market. Scrip also encourages Bayan to act in a way that will lift KRL's share price. The higher the share price the more upside for Bayan (once of course it has all the stock it wants).

As I understood the early stockbroker reports, Pakar is the "company maker". Low margins but volume and steady supply. I'm not sure I 100% accept that but I'll defer to those who know more than me about such things.

Also as I understand it Bayan has an interest in the technologies needed to improve the Pakar coal, so if KRL wants to keep or expand its interest in Pakar then the tie up between KRL and Bayan (rather than some other entity) is a good match.

It sounds like KRL was in a world of hurt with Mamahak. The combination of cash burn, further funds needed to advance production, and lack of sales meant KRL might have been heading right back where it came from (ie, external administration) Reading between the lines Bayan saved the day.

I agree with sentiment KRL needs to keep up the announcements if there is any good news to report. So for example if they are now in steady state production they should say so; if sales are continuing we need to know. That is because of this company's history over the last 2 years - which has been that no news = no production and sales. That perception needs to be changed by the company through a steady stream of announcements.

It appears from the news article on Bayan that Bayan now has its "independent expert" report. Hopefully that means KRL's own report is coming soon.

It would also be nice to know if Kubah Inda is still in play. I only remember one announcement indicating the dispute and nothing since (I might be wrong). If the dispute is still on foot then fair enough, if KI has been abandoned then the shareholders need to be told given that set of tenements was a significant factor in the long-term projections for the value of the company.

I do think that finalisation of the transaction with Bayan, and continued sales and production, will lead to a steady increase in KRL's share price. Those days should be upon us soon (ie, over the next 3 - 4 months).