Some debt is healthy and as they have plant and machinery that is valued well in excess of the debt then I'm comfortable with their level of debt that might be as high as $125mil(before any debt liability to Zurich) that is made up of Nebari A$56mil, MetroCAT(or Bangkok Bank as guarantor) A$57mil, Preference shareholder A$12mil - it's just a pity that the interest rate on most of the debt is higher than normal but still easily affordable given the margin of profit within the business. The Dec quarterly report should be positive on many fronts especially on the cost(AISC) front and would expect that the weekly production in the Dec quarter will have increased by 250 ozs Au/week over the Sept quarter or a 20% increase - if we can keep on increasing by that rate during the next two quarters then we'll be at a rate of over 100k ozs Au per year - I firmly believe that's achievable.
KCN Price at posting:
$1.28 Sentiment: Hold Disclosure: Held
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