Magnis buys $200 million of battery making equipment for $5 million, page-30

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anf0

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08/02/18

13:36

Post #: 30916660
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Originally posted by anf0 ↑

I’d be very wary of Magnis’ numbers. It says $200m was invested in the plant, so take into account construction costs and a sizable 290 employees.

Also, keep in mind stage 1 production is for 3GW, and this equipment will only produce 1GW of that. So they haven’t even met their own stage 1 requirements yet, and I doubt they’re going to find the other 2GW for $5 million a pop in capex.

The waters are still somewhat muddy on the details of this transaction. MNS raised US$3.9 million Before costs in this CR, and it says Magnis and C4V will invest equally. Does that mean they’re fronting $2.5m USD each for this purchase?

Also, it states this purchase will result in an increased stake for MNS. If I’m a multi billion $ partner in this consortium, why would I sell equity to this minnow (MNS) so cheap? Someone trying to cut way back on their exposure/risk? And this means Magnis will have to front a much larger portion now when they fund the other 2GW they need for stage 1.

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Further to this Tony, as evidence to back up my point, the announcement states they had a planned CAPEX outlay of $130m for 3GW of production. That’s about $43.3m per GW. So Magnis paid $5 million (plus x amount for moving and re-engineering) for $43.3m in equipment, and the $200m they’re touting would have been the total investment in the North Carolina plant including construction, fit out, employee costs over x number of years etc.

Very very misleading.

MNS Price at posting: 43.0¢ Sentiment: Sell Disclosure: Not Held
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