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

Originally posted by Stevienix1 ↑

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’

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Thanks, I'll look into it a bit more.

With respect to your question about the Quarterly Cash Flow Statement:

2. Which entities must give Appendix 4C reports and for how long?

Listing Rule 4.7B requires an entity admitted to the ASX Official List in the ASX Listing category1 to complete an
Appendix 4C quarterly cash flow report and give it to ASX if:

• the entity is not an investment entity,
mining exploration entity or oil and gas exploration entity and it was admitted under the “commitments test”5 in Listing Rule 1.3.2(b); ...

A “mining exploration entity” is an entity whose main undertaking consists of exploration for minerals or which has been advised by ASX that it is a mining exploration entity for the purposes of the Listing Rules (Listing Rule 19.12). Mining exploration entities have quarterly cash flow reporting obligations under Listing Rule 5.5 and Appendix 5B and therefore are excluded from Listing Rule 4.7B.

As KBL is a producer, KBL is not required to issue an Appendix 4C as part of their quarterly. I personally aren't a big fan of the rule but it is what it is.