tide has turned, page-12

The new project will have some logistical synergies. So its a good stratergy. And looks like the JV partner is spending the money, so a low risk play. Probably not a huge reward, but nothing to lose.

The con note is basically a replacement for the Celtic note. So its not too bad. Atleast its not an additional amount.

Somethings still dont add up entirely. The claimed output and stockpile and months of production. Some seem conflicting. And if we are on verge of serious cashflow then it doesnt make much sense to drawdown $1.2mil unless we are rewarding someone.

Also we are drawing it down in $150k tranches. That style constant dilution usually works against a sp. Everytime it attempts to rise, their will be a conversion and sell down. In theory they work. In practise they dont. Ie it would be great if sp rises and each drawdown is at a higher sp.

It does so that cashflow isnt enough to sustain the company at this stage and we need the additional $150k drawdowns. It also shows that Noble didnt want to advance more from tranche 2 which would have been preferable to another note.

Fully diluted and converting debt for equity, then KAB is not cheap. But not expensive either. Just they will need more runs on the board before market takes them seriously. Lets see a quarterly with actual production and revenue. Lets see how much Noble get paid down and how much stays in KAB accounts. Lets see the output and margin. Then it will re-rate if justified.