That's true, I'm certainly thinking longer term. And yes, I don't think KLL is quite as undervalued as it looks if you apply a more realistic pricing model. Still a good buy under 20 though.
Debt servicing is the usual short term risk, but KLL has fairly favorable terms (better than SO4 for sure). Things would have to move VERY badly on the pricing front for them to be unable to service it, though if combined with other problems who knows. What I feel is possible is that cashflows will get squeezed enough that after the debt is covered, paying for Stage 2 will just take too long. A capital raising may eventuate to speed things along. But I think they would be testing institutional appetite for such a thing before going ahead, not just rushing a desperate "we need money now" raise as we've seen before.
KLL Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
(20min delay)