great post and I am reluctant to comment on threads. Ill have to enforce that with more discipline maybe. ILL JUST INSERT CAPS WITHIN YOUR TEXT IF I MAY
In my opinion the confirmation of the remaining finance for project will not be finalised in the near term. I HOLD A VERY STRONG OPPOSING BELIEF TO THIS. THEY DO STATE WHOM THEY ARE WORKING WITH AND I FEEL THIS HAS BEEN WORKED APUN FOR SOME MONTHS NOW. I POSTED A FEW WEEKS AGO ON THIS AND DIRECTED SOME (pls phone) AVENUES IF REQUIRED AND WAS APRECIATED BUT FELT THAT THE ROAD WAS DEEP IN CONSTRUCTION AND TOO LATE TO START A FRESH PROPOSAL.
There is currently still 65 million dollars in the bank to get the construction up and running. Some of that cash will be used as working capital for the DSO deal to earn more money for the Capex. I ACTUALLY DONT THINK THE DSO WILL BE ANYTHING MORE THAN SURPLUS OR MAYBE CONTRA AVAILABLE DRAWDOWNS TO SAVE INTEREST.
In the meantime, I'm sure KB is still negotiating other DSO deals to get additional earlier cash flow. I GET THAT THOUGHT ALSO. WHAT HAPPENED TO THAT OTHER COMPANY WE ALL EXPECTED? KA?L
It is a 214 M dollars project but the full amount won't have to paid till the commissioning stage is completed which is 12 months away. There is enough time to source additional Capex. MY THOUGHTS HERE MAYBE BULLISH TO SOME? THE CONTRACTORS HAVE A SHORTER TIME FRAME TO COMMISSIONING AND I SEE OUR REVISED CHART ON ACTIVITIES AS BEING GENEROUS AND ALLOWING FOR UNFORESEEN SLIPAGE. I CERTAINLY EXPECT SHIPS TO BE BOOKED WITHIN 12 MONTHS.
Finally, when the ML is out and the GL and GF deals are honored, debt financing will be an easy and better solution as the pay back time will be less than 12 months given 100% production is already locked away. FINANCE MAY WELL BE APROVED BUT NOW CONDITIONAL UPON ML APROVAL?
Even when the GL deal fell apart, Im sure GF will be more than happy to take up the 140kt originally assigned to GL. If not why would they provide support for stage 2 with another 150 kt off take? SOME LARGE FACTORIES CURRENTLY IN CONSTRUCTION ARE SET TO NEED CONCENTRATE FROM JULY 18. GF HAS ACHIEVED HIGH GROWTH RATES BUT I WOULD SUGGEST THERE NEEDS ARE MET IN THERE AGREEMENTS AND BUYING HUGE STOCKS ABOVE CAPACITY WOULDNT BE PRUDENT UNLESS THEY CAN ONSELL IT. I HAVE A HUCH THAT THE BOA IS QUITE UNIQUE AND IS PRICED IN SUCH A WAY WHICH WOULDNT MAKE IT ATTRACTIVE TO ONSELL. HOWEVER IM NOT EXPERIENCED IN THIS AREA AT ALL. JUST A GREAT CHESS PLAYER.
Good time to be holding. Mining license is key in my opinion. ABSOLUTELY
Cheers
PLS Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
(20min delay)