Ann: Revenue Generation Recommences-KBL.AX, page-101

If I had $70M is would diversify it.

As to the liabilities of $71M, you would need to speak to KBL to determine how they dealt with the future commitment to supply product at low cost. Their initial liability was to repay USD23M from production at bargain rates with special rates continuing for the life of the mine. It is non-trivial to value this liability when you dont know what future metal prices will be, how much you will produce or when you will produce it or how long you will be producing it for or even whether you will be producing gold, silver, copper, lead or zinc. All these metals are subject to different pricing which is beneficial to Quintana and therefore a liability to KBL. The accounts need to show this as a liability as it is pre-sold. As I said it is non-trival. However it is material and affects KBL's enterprise value. So I guess they use the best information they have to value it and so we get $71M as the liabilities..

Prior to the Quintana deal, besides creditors KBL had liabilities of AUD$10M + AUD2M interest to Capri mining and the AUD $11.4 on the KBLGA notes. Now besides the Quintana deal they have creditors and the KBLGA notes. I am not aware of any other liabilities of any significance.

Should I say DYOR.