"Why would they do a rights issue when they have Noble "Debt financing deal" ??"
Debt level is high even before the Noble deal. I'd be more comfortable lowering the gearing. Payout OKAP. Convert Celtic. Both at higher sp than now. That's why I predict higher sp.
Then my cashflow can be diverted to drilling and servicing Noble debt.
Maybe (after Noble deal) you are comfortable having total debt > market cap. Maybe you don't see the benefits of a well timed CR. Personally I think it would de-risk KAB further AND reward loyal holders. Win-win. But Noble is the main de-risking event unless RB is correct about the spiral.
I know you alluded to the top up right of Noble, so I guess you have similar concerns?
Personally I would have raised prior to this suspension, or at the same time. Otherwise we are 100% reliant on Noble or OKAP.
The fact this is now dragging on means the terms are still negotiable, otherwise with waivers granted and due diligence, it just requires a signature. Trading halt is enough to protect an uninformed market.
This added suspensiom means it's more complicated imo. But I'm still expecting the green light. Because they could have and should have raised money if Noble was shakey. So Noble isn't shakey imo.
KAB Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
