KAB 0.00% 0.1¢ kaboko mining limited

A couple of quick notes.- FYI Proactive Investors are paid...

  1. 1,138 Posts.
    A couple of quick notes.
    - FYI Proactive Investors are paid infomercials
    - The register has increased 2.3x not 3x (that is still terrible and I LOL that the argument that its not 3x but 'only' 2.3x)
    RE: Ann Report
    - An emphasis of matter opinion is common in this space
    - The $7.1M loss includes $3.2M for impairment and 900k for options which are 'accounting' non-cash values
    - $4.1M was raised during the year of which $2.3M was spent on exploration including acquisition costs.
    - Actual cash payments to suppliers and employees totalled $1.8M so cash payments to directors (and their associated consultancies) would be less than this figure.
    - $1.6M in loans incurring interest at 10%pa are due on December 31, 2012
    - Share issue costs of $700k were incurred, interesting that they have not disclosed the allocation of these costs across the various raisings
    - 300M of the options are priced at 3c so well out of the money atm
    RE: Celtic Capital
    - the issuance price of 5,514,706 shares equates to around $85k, presume the 5M options also issue are worth $15k so say $100k in issue costs = 10% fee up front
    - In addition Celtic take the debt back as a convertible note with the ensuing shares priced at 80% of the 10day VWAP. Sweet deal for Celtic

    Summary - I wouldn't buy this
 
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