K92 Mining Inc T.KNT

Leverage

[ITSTHELAW]

Most investors believe no debt on the balance sheet is very positive but using leverage within limits (especially in low interest rate environments) is a tool used to increase the return on investment. Borrowing a little and paying a small dividend (which would attract a whole set of new investor types including institutional dividend funds) may not be a bad thing. Of course, everyone wants the company to reinvest to grow, but there is away to keep all the investors happy and grow at the same time!

[aimhigh]

Indeed. So many ways to look at balance sheets.  On a previous video , John L , remarked the company is often approached by banks offering loans. The company has shown good cash flow , so it should get good rates. Cash could be used to advance Phase 3 , or drilling or both. But the bonus of taking a syndicated loan is : most of the banks have a brokerage arm. Shares are often held in escrow