I query your interest rate P&L calculation to hit $7.76m of...

I query your interest rate P&L calculation to hit $7.76m of impact per year.

The loans are treated on a capitalised basis on the balance sheet, as such, the long term interest is already booked onto the balance sheet as a liability. The only interest expense we will see on any given year would be the rise & fall values.

The key is to determine whether KLL will have enough free cash flow for the next 10 years to meet its debt repayments with loans maturing in 9 years & one in 14 years.

Based on high level numbers it will be tight:
90% Cash Received on Sale of Goods $80,000,000
Cost of goods sold $45,000,000
Royalties & overheads $13,000,000
Loan & interest repayments $16,000,000
CAPEX Sustaining $5,000,000
Free Cash Flow $1,000,000

Note: Capex is likely to increase as the mine ages, earlier in the mine life sustaining capex should be minimal.