Exactly. That's what I'm saying. We will struggle to make anything off this particular offtake agreement. But it provides the funds we need.
The real money is made when we can produce more than the 15,000/month plus some to Sino also.
Their is incentive for Noble to take more. They have already expressed in the announcement their right to match and increase future offtake. And more importantly their right to obtain a marketing fee from KAB. That's what they're after. As much ore as they can get and they will onsell it and get a fee from us. Hopefully they leave some crumbs for us.
Why is it taking so long? Perhaps transportation is the sticking point?
Sounds like you expect the first tenament to be exhausted fairly quickly and we need to move on to the sencond resource. Guess that means RBs loft PE ratio is out of the question and the mine life is very short.
All our money goes back into paying down the debt and exploring the resource. Nothing left for shareholders. If that margin gets crunched then KAB could be in real trouble. Would be conforting if we had more drill results and a longer mine life. But we have one decent vein that you have previously mentioned. I pray that is a company maker.
Guess you need to ask yourself where will KAB be in 10years. No cash. No resource as its all been sold. But we will have a $1.5mil processing plant. So true value might be around their somewhere?
Sounds like all this offtake has done is gaurantee 10years of salaries to OKAP and to Noble too. Noble would be smart to ask for 2 board positions. Then they can draw two salaries.
KAB Price at posting:
1.5¢ Sentiment: None Disclosure: Not Held
