The capex from the original BFS can be filed in the box marked trash as it has no relevance to the current proposal. To be blunt, I felt it had little relevance to the real costs, which I mentioned at the time of the original BFS release.
So, costs for this project in its current planning state are completely unknown, suffice to say they will be far higher than was originally quoted. Higher capex costs are not a bad thing, as long as they are matched with higher cashflows. Obviously,ratios are yet to be seen, although the company mentions in today's announcement that the figures are robust. As robust as the original BFS are yet to be seen.
I'll sound a bit vague here, as I'm relying on my memory of previous company information and not enough time to check at the moment, however I recall part of the financing deal required a % of equity to be raised by ATC.......memory suggesting around $35 to $40 million. If that was the case, then surely a much higher loan requirement will also incur a higher amount to be raised. That's something we need to keep in mind as the funding process moves along.
The structure of that raising also gives me a little bit of concern, which I have mentioned before so won't dwell on it.
Nice to see a target date announced, should keep people interested over the next three months at least.
Watching but still not re entered.
Cheers and best of luck.
ATC Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
