If anyone is following this stock ,please let me know.I am looking to invest but need clarity on the nature of the contingent liabilities as they have not been mentioned in the annual reports.would appreciate anyone with the information.
@Gothamcapital TBZ doesn’t buy gold, what it does is take gold on loan from banks and in return banks seek a bank guarantee covering 110% of the value of the gold taken on loan.Bank guarantees are not actual liabilities but rather contingent liabilities.What you see as contingent liabilities in the notes to accounts is the amount of bank guarantees TBZ has offered to banks for the gold it has taken on loan from the banks.
May i know the source to the ‘110 percent of the value of the gold’.I did research on the stock,my only issue was the salary of the KMP seemed to exorbitant.
@Gothamcapital You can find a fairly detailed explanation about gold on loan towards the end of the quarterly investment presentation.I have been researching TBZ for a while and i’ll be attending the con call tomorrow too, will be writing a detailed post on the company very soon.