The $71M figure for the creditors is misleading as not all the $71M is currently owing.
Part of the 71M figure is clearly described as deferred revenue. Stevei's post #18470740 links this to the streaming agreement and he is correct.
In current liabilities $3,675,147
In non-current liabilities $26,897,238
These figures total $30,572,385.
These are contingent liabilities which become due when the mine output is sold.
So in conventional terms the liabilities are $40.5 with an additional $30.5M contingent liabilities.
Lumping these together as $71M liabilities is misleading as $30.5M is not yet owing. It is in fact only a best estimate. The final figure depends on metal prices at the time, the quantity of metal produced and whether it is gold, silver, copper, zinc or lead. You will appreciate that this figure is contingent on how the future unfolds.
In fact as C1 costs include streaming costs so you have to be careful you dont double up on your costings.
However as it is a future payable it is a liability, but it is not yet owing. I spoke to Jim about making this clearer in future accounts as it is easily misunderstood. I will find out if they take any notice of this when the yearly accounts are released.
They are contingent liabilities, estimates of what is payable under the metal streaming agreement when the metal is sold.
KBL Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
