I don't think KAR has $500 Million in US Dollars. The latest quarterly report is in Australian Dollars and shows cash on hand at about A$550Million. This report also shows a loss on forex.
My guess is that KAR have either converted out of US $ into A$ or have burned a lot of US $ cash thus reducing the A$ pile. My gut feeling is there is about US$380 Millions. Exploration Expenditure Q4 is projected at US $ 45 Million. Add To this is the buy back spending so I suggest that by 31 Dec 2015 KAR could have as low as US$300 Millions as cash on hand. That would be about US$1.20 per share.
If KAR have already converted their US $ stockpile into AUD ,then by 31 December 2015 the AUD cash balance would be about $450 Millions. That would equate to about AUD 1.90 per share (based on 236 Million shares after buying back 10 Million at say AUD 2.50 per share)
KAR Price at posting:
$1.77 Sentiment: None Disclosure: Not Held
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