KMC kalgoorlie mining company ltd

I think a lot of potential investors got a bit surprised by the...

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    I think a lot of potential investors got a bit surprised by the 35mil in loans the company is attempting to raise.

    That would change the financial mix fair bit. Company will need to service the loan during the construction stage of the processing plant. Once the plant is operating, the whole operation should become a lot more profitable, but that is some time in future. Meanwhile there are the transport cost of trucking the ore plus the interest on the finance, if it can be raised. So not that much left over in the company's coffers.

    Also the price of gold pulled back from $1900 odd down to around $1650. That would change the financial projections somewhat.

    It might make better sense to postpone the loan plans for the time being, keep trucking the ore and banking the profits, then say in six month, with a few more millions in the bank go for a smaller loan or capital raising.
 
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