In the case of KBL there is no complexity to their accounts at all. All liabilities are either current (payable within 12 months) or non-current (not payable within 12 months) there are no items under contingent liability which means that all these liabilities are payable.
As at 31/12/15,
Current liabilities are stated as
Trade Creditors $17.5m,
Financial Liabilities $9,347,432 ($8,431,558 is owed to a company called MRI Trading AG)
Deferred Revenue (Streaming) $3,675,147
Provisions $459,296 (I assume provision for interest)
Total Current Liabilities $31,026,028
Non-Current Liabilities are stated as
Financial Liabilities $1,905,285
Provisions $684,488 (I assume provision for interest)
Deferred revenue (Streaming) $26,897,238
Convertible notes $10,524,332
Total Non-Current liabilities $40,011,343
I will agree with you that typically companies prove reserves 2-3 years in advance but in the case of KBL i'm seeing statements such as we will be out of ore by November and with regard to Pearse North, all I have seen is a statement to the effect that the Pearse North has 15,000 ounce reserve which is produced from ore containing 2.5 grams per tonne.
If they struggled to make ends meet with grades on 7 grams, how do they pay back all this debt whilst delivering 25% of production at significantly below cost to Quinanta without doing a significant capital raising?
KBL Price at posting:
0.6¢ Sentiment: Sell Disclosure: Held
