new low, page-12

KML has debts of some $US3.1b - refer to last Annual Report - first time ever reported.

The margin for the 2019FY half is $AUD136.21m (about $US95m) excluding depreciation and amortisation, corporate administration, sale, royalties, ocean freight, interest and financing costs.

Interest on $US3.1b at 3% = $US90m. so nothing to pay for depreciation and amortisation, corporate administration, sale, royalties, ocean freight and financing costs.

Sale price of hematite for Dec qrtr $AUD128.61 per tonne. Current price $AUD138.71 (approx). So making about $AUD10 more per tonne on 2m tonnes which equals $AUD20m or $US14m. Goes nowhere towards paying down loan.

My view is that KML has to sell hematite at $US130 per tonne for the next 10 years to get out of the hole.

At this stage I can't see it happening. But I am an optimist!

GBG value of KML shares = NIL.

Austeel will not buy GBG out, because they will get it for free at sometime in the future. IMO.

Copper and Cobalt discoveries will take time to get to market - but Cobalt price has retreated.