Ann: Revenue Generation Recommences-KBL.AX, page-106

Hi Romann,

You have asked some questions that are impossible to answer without knowing what the repayment timetable is to be.

In short, the debt is paid out of profit. EBITDA is Earning Before Interest Tax Depreciation and Amortisation. So when KBL says it made an EBITDA of $x that is before applying interest on the loans and does not mean how much spare cash they have. The amount of spare cash is dependent on how much of their EBITDA they use for re-investment in development etc and/or for debt reduction.

Hope that makes this clearer