The note holders would be equally as ecstatic if they got 2.8bln shares and they were worth .004
The point you make though is that if the note holders were to get paid in full at the prevailing price, then they would end up with 66% of the company.
If that occurred the notional market cap of the company would be ~20m. Oh, look that equals.....005 cents per share or if there was a 100/1 consolidation then about 50cents.
By the time that happens (02/17) KBL is hopefully mining Pearse North, which is ~40% of the Pearse grade.
So if the C1 costs of Pearse are USD781 inclusive of Streaming obligations...what do you think the C1 costs of an ounce will be if the head grade is only 40% of Pearse? I don't know the answer to that but I am going to assume it's got to be at least 50% more?? at say USD1171 an ounce. Leaves you with a USD180 margin to explore, develop and meet corporate overheads.
Pearse North is only 15,000 ounces...guess what, the company will need more money to survive...enter the option holders that give the company another $6m for 1.2bln shares. Now you have 5.8bl (lets call it 6 billion shares) and then...bingo, they get a strike! wow and the company is now worth $60m that's an incredible...umm lets see....1cent a share..ok I am being sarcastic but you get the drift?!
KBL Price at posting:
0.5¢ Sentiment: Sell Disclosure: Not Held
