Well don't draw down 62 million in new debt with nothing to show for it. If you can find what they spent it on, then I will believe you that it's not there. But they clearly listed their major expenses and outstanding debt facilities. Interest in included as payment to creditors of -5 to -10.
Yes, sales does not cover expenses. Metal prices were in the gutter. At current levels (up 10%+) they would however, but I didn't put in current levels and won't until Europe is all clear. KZL invoice at month end, so you input prices at this time to get a better idea.
If for example I upped the copper margin, which is very low for Q3 to $1.75 for an average realised price of $3.49 (currently $3.64) the revenue jumps to 22.1 mill and together would be 27.8 for Q3, so it's early days.
Zinc is fine as is, nickel is unclear as far as what KZL sell to WSA for....i.e. a middleman, so best to leave the margin at 50% of prices. You could go a much higher there.
This would affect the value of inventory too.
So,
Inventory at +18 Cash from ops +28
Other possible cuts:
Creditors -7 (interest on loans) Dev -7 Ex -5 Operational expenses -20
That puts them in the black by 7 mill.
KZL Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held
