At last I have found the total debt of KML for which according to the 2018 Annual Accounts Clause 26, sixth paragraph on page 40, the Limited Recourse Guarantees exceed $US3.1b.
This has not been published before.
My previous calculations on the earnings of KML was based on a debt level of $1.481b. The total debt appears to be $3.1b. Interest costs would be (at 4%pa) $US124m pa. Repayment of $3.1b over 12 years by 2030 equals $258m pa.
This is some $US23.24 per tonne more than the previous calculations.
Based on 8,000,000 tonne exports, my revised cost and repayments is $US101 per tonne.
It appears that the contingent liability is growing every year.
If KML is to make 20% margin the selling price of KML magnetite should be at least $US122.18 per tonne. or at current exchange rate (0.7212) $AUD169.40.
No wonder GBG values KML at NIL.
GBG Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
