Ann: Revenue Generation Recommences-KBL.AX, page-53

Current Pearce OP + capital raising should resolve the debt and note situation. Most if not all with a surplus. They also own a very very capable Plant that has just had $30m spent upgrading it. Total note and creditor debt is what 18m? currently?


Pearce North shallow, reasonably good grade, and cheap to cut and process. Southern Ore zone also presents near-term value.

PYBAR and other creditors wouldn't have been taking shares in lieu of cash if they didn't and not expect a return. Obviously, they are seeing the difference in operation and happy to settle part of the short term debt crisis this way, which also incentivises their work.

Management also seeking growth opportunities, I would expect that the company making profit generated from Pearce North
(which as it stands could be opened as soon as the current pit is depleted if the ML is granted) could be used to develop other projects. Even within Mineral Hill which is host to many passive resources evidently, just needing further exploration. They are estimating and targeting a further 7-10 year life out of mineral hill on its own.

I will agree that the note funding and debt issue is a bag of sh1te but it wasn't put together by current management and it is on the fast track to being cleared. A lot of major hurdles out of the way and production figures have been on the rise, as with PM prices. On track for 7500 oz au and 100k oz Ag for September qtr. Next qtr will be even stronger hopefully without interruption. September is still very good considering the cracked Haul road. Oppies fully subscribed and should convert both ST and LT.

Everything is set up for a remarkable recovery here IMO. The hard yards are done, the bad deals are done and the menzes are well on track to being made with invigorated mgmt.

Not sure what you base your overall valuation on but to me, 7.7m MC is well undervalued even with the near-term debt issues. I would suggest once the dust has settled, if PMs hold up and once some consistent production figures are posted this should very quickly rerate - I don't think a MC of 40-50m wouldn't be unreasonable to expect, potentially even conservative. Some explorers are valued higher than this.