Agree that bank facility renewal should not be a problem. MUX shares worth $60M become free-trading in June 2012. Not liquid but good to secure a loan. Also Lounge Lizard looks to be about $1M/month cash flow and asset for sale. So reasonable chance they could pay off debt in one fell swoop soon. And these are just the peripheral assets, not the main operating assets.
But tas does have a good point here. KZL gobbled up $60M cash in Q4 ($25M share issue, $20M drop in cash, $15M increase in debt), and they cannot do this again regardless of what the reasons are (increase receivables, decrease creditors, mine development, exploration, etc).
As a significant investor, would prefer if KZL put the brakes on new MD's exploration/expansion plans for a few months. Another quarter like Q4 would be ugly.
KZL Price at posting:
33.0¢ Sentiment: LT Buy Disclosure: Held
