Ann: Restructuring Arrangements with Major Service Providers, page-6

First 6 Last

Share
Profile

Follow
millions4683

216 Posts.

7

22/02/16

13:20

Post #: 17082240
Share

Originally posted by no1trishada ↑

Share price down 20% today as I write...what a strange reaction to the announcement of solutions to the Company's known problems! The latest quarterly report left us wondering how KBL was going to solve its urgent cash flow dilemma and how it was going to fix the plant deficiencies leading to such disappointing gold recoveries. So many investors and HC subscribers, being blinded by the rising gold price, have just ignored these problems subsequently. But they had to be solved, and quickly, for the company to survive.
I was worried that the next announcement would have been of a highly dilutive large capital raising or, worse still, the directors may have finally just given up and appointed administrators. But no, they tell us that all known problems will have been fixed and been paid for by October with only a minimum of dilution - a couple of million dollars worth of shares issued at a discount to satisfy overdue creditors.
And then we can start to dream of future ultra profits in this current fantastic environment for Aussie gold producers.

Expand

Its annoying to see the price drop like this but it does seem like a major over reaction. The company is saying yes its had a few problems but its sorting it all out and it will be okay. I don't think the directors would give up on this one. Lots of gold in the ground and doesn't sound too hard to dig it up.

KBL Price at posting: 3.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

The iron ore comeback: Can it last?

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

ZNC

Zenith's sale of Develin Creek delivers $975K cash, with shares up 13%

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

HAS

Hastings progressing Yangibana to production with lower costs