re: Ann: Scoping Study Completed on Northern ...
Not sure if we should be using market cap as a yardstick. KAB is high debt when you take into consideration the Celtic loan $1mil and the OKAP loan $1.5mil(and growing with interest). Then ofcourse the Noble debt which stands at $4.5mil but will increase to $10mil. But atleast the Noble debt is healthy debt, used in a productive way to generate income and hopefully KAB will be cashflow positive.
But just the current $4.5mil and $1mil and $1.5mil is a total of $7mil. So our market cap is about $4mil but the enterprise value is more like $11mil. Possibly still cheap but not as compelling. Mn is a low margin, bulk commodity. KAB have high expenses due to distance and high management and interest costs. It wont be easy. Steady re-rate possible. Major re-rate unlikely imo.
KAB Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
