After a lengthy conversation with company, I had all questions thoroughly answered.
My first takeaway from the call was for the current "micro-cap" market capitalization of $15 mil, one can not own a stock this cheap with the level of professionals involved, or even begin to build a similar company with talent and precious metal resources. It doesn't matter anymore where the stock has been, it's where it is now, and that IMO is drastically undervalued for the level of infrastructure involved, both the physical and non tangible assets. This statement is my impressions and color, not anything the company said, and frankly, this is the way I make my living, finding dislocated market caps.
Another takeaway, Sprott is not an unfriendly party to the company whatsoever. They are not a seller/shorter nor want to crush the company to own the asset. Sprott loaned the money, and is being paid very well for that service. Also, the weakness cannot be pinned to any one large shareholder, as the company appears to have excellent relations with shareholders with size. So again, IMO this was a multi-year capitulation after a relentless slide from $1.50
The $5 mil note/credit line with Sprott does not have any features that are egregious and the company is in "good standing" simply by paying the interest. $5 mil is not a lot of money, and a fix IMO is not a huge stroke. I have stated in a previous post that the note is expensive, and with the weakness in the stock, it's my guess management not thrilled looking back. The whole Idea WAS non-dilution to us, the shareholders. I am confident that $5 mil isn't going to hold back Kimber long.
With all that said, I left the call with a strong level of confidence that management knows they must address the note to the market asap, they understand the overhang nature of the note, and I feel/speculate the fix is forthcoming.
Disclaimer: I do not speak for the company obviously, and the above is my color and interpretations as a speculator. Good Luck!
