I think you will find the answers to your questions at http//www.kagara.com.au
Read the feasibility study and other later documents which have significantly increased the size of the resource since the feasibility study was completed.
The costs they quote are total costs for production, but the company would have a few other liabilities such as repayment of the loans and eventually paying tax.
They calculate that profit from the first two years operations will pay back establishment costs and so I assume they will be debt free after two years.
As establishment cost is around $50 million dollars, this means they expect a profit of about $25 million a year from sales.
The current market cap of KZL is around $30 million, though as the number of securities on issue is about to effectively double lets say the market cap is really $60 million.
Thats a pretty low market cap for a company which should generate a gross profit of at least $25 million per annum for the next fourteen years.
Hope that helps, but check out their web-site for details.
Dave R.
KZL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
