I didn't ask that question (would've been good) but I think that the reason that CKK wouldnt be is because they are not only proving the rig over the next few months in a operational sense but also its revenue and profit margins.
At the moment shareholders are investing on 'trust me' figures and once they can be proved, individuals can invest with greater confidence - including banks. With these numbers, combined with forward contracts (that sound promising with successful completion of whicher) banks will be happy to lend money. This is how I want the next rigs financed.
I don't think CKK want to go 'gung ho' building rigs and burning cash and put the company in a precarious financial situation where it may be susceptible to many forms of risk. The only real damage that the low share price is doing to the company at the moment is the note holders are getting cheap shares at our expense. If an announcement comes out saying we have a contract spanning six months worth $6 million, which in turn has secured a loan for $5 million and the construction of 2 rigs will begin, I think that will be the real start of something big.
Cheers
Rusty
CKK Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
