KBL (ASX) Ann: Revenue Generation Recommences-KBL.AX

Originally posted by Bobsa ↑

I may be wrong, however isn't the KBLGA bond convertible; and doesn't KBL the option the push the repayment back essentially indefinitely and the bond holder has the option to covert at like 32c? If my understanding is correct it is hardly correct to say it is repayable in 02/17...an outstanding debt which should be added to the calculation of the EV though for sure.

The $6M debt to creditors is most definitely the major concern at the moment.

The 19,000 ounces within Pearce which conservatively should equate to $12M net should be enough to service atleast the $6M, working capital and a bit of drilling

Time will only tell what additional Au/Ag resources the drilling will uncover, however there is still plenty of polymetallic sulphides left to mine and base metals will shine brighter than precious in 2017.

It is definitely going to be a challenge, and No rose coloured glasses here, however for those after a recovery play which is where the market is IMO overpricing risk and severely under pricing this company, then their isn't a better play around.

It isn't for everyone though, so good luck in your other investments.

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Hi Bobsa,

I am using printed information as put out by the company as follows below.

Also...has anyone seen a quarterly cashflow report for March or June 2016? i can't find it on the ASX announcements page. I am interested to see the actual cost of production vs the what the company says it should be. The reason i am interested is because in the short term KBL must deliver almost 25% of all gold production to Quintanta for $290 per ounce...

Here is the excerpt from the March quarter and it is quite clear that the bond holders must be repaid by February 2017 unless there is a takeover offer that has resulted in the directors recommending the bid or the offeror has acquired at least 50% of the company...tick tock..

MANAGING DIRECTOR’S OVERVIEW – March 2016 Quarterly Report, Page 2 paragraph 5

‘The Company is currently working closely with the Convertible Note Trustee to best deal with the expiry of the $11.2M (issue value) in notes (ASX code KBLGA) in February 2017. Under the terms of the notes, they need to be repaid by this date, or alternatively, conversion is deemed to occur if a takeover occurs prior to the February expiry date. What this means is that under the terms of the notes, the 28.9M notes will be deemed to convert into 28.9M shares if an off-market bid, a market bid, scheme of arrangement, or offer or invitation is made to all holders of Ordinary Shares is made and the offeror has at least 50% of the voting power or the Directors issue a statement recommending that the bid, scheme or offer’