If ANZ asked KZL to settle all debt as part of the refinancing (highly likely), they would probably would have had 7 mill left less 5 for redundancies etc. Net 2. Pretty tight and thus why we see Baal Gammon on temporary hold until the refinance facility is complete.
They also have 27 mill coming out of escrow in June from MUX and would have no debt by now plus the possibility to sell a major non-core asset (AB), which could fetch 30-40 mill if need be later in the year and which could be used as a loan guarantee.
Far from game over, the copper business is still very profitable (with 5 years of copper resource at Baal Gammon & Einasleigh) and I'd say the ANZ refinancing is a certainty with 0 debt and 27 mill of equity and 40 mill in a possible pending asset sale and when in consideration of ANZs own view of zinc & copper, which is very bullish.
Sell if you like and are unsure. I'm in for the long haul.
KZL Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
