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13/02/19
11:26
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Originally posted by The Mole:
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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.
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Mole They are not going to get GBG's share of Karara for nothing. It will have to be paid for. They will want to go to 100 % for many reasons So its just a matter of time They will end paying a fraction of the costs that GBG shareholders incurred.