I am not too sure if I agree to this theory about debt v equity...
I have no idea about any company/mine/plant having only one of the two... it is ALMOST ALWAYS a mix of debt & equity (happy to be corrected here)... I am not talking of just explorers who many a times have 0 debt but it is expected of them to have only equity participation as no one will give them any debt with just google maps as their main backing...
I am sure even here, it is not going to be 100% DEBT and no new equity being raised... it will be a mix... 50-50/40-60/60-40/30-70/70-30 something on these lines...
a low debt will be good too as servicing debt is always the albatross around your neck in leaner times... a high equity dilutes you but this equity need not be "serviced"... if they make money, they give dividends... no profit, no servicing of equity... but debt has to be serviced ... even if you have to part with some control down the line, the debtors will have covered themselves... so a 100% debt may seem a GOOD or BETTER option now, but I am not a big fan of that option.... of course, if we can pay that out in 3-4 years as the company ann says, then 100% debt is perfect... but a slip up here or there and we land in deep poo sooner or later...
and why are we getting worried about this? this management has under - promised and over - delivered so far... and I am sure in the coming months, this will be the case... they will bring home the bacon... I am only invested in one graphite play (of the big ones) and imo I have placed my bets on the right horse...
KNL Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
