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Cashmeoutside

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1920

07/08/18

19:10

Post #: 34783860
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Originally posted by the squash ↑

I've just observed the comments about high interest rates a few times...

My take is I would understand the desire to restructure it, but it is short term finance. From memory it was a 2yr term - someone correct me if I am wrong?

You would expect high rates on such short term money. I'd rather pay off 15% debt over two or three years at a time when we can be confident offtake price will stay elevated, rather than be saddled with 8-10% for 10yrs for example.... When you consider equity deals in this space are typically chasing 30%+ in the short term, 15% debt over 2 years is actually cheap money.

I just did a quick calc and the interest and principle payments on 12% over 5 yrs (PLS) are more than 15% over 2 or 3 years (AJM)

Interesting to note we almost took out 27.5 on the close today, while Li went backwards across the board. Would seem to confirm AJM is oversold - sell side on the screen has looked fairly broken the last few days.

Just need one good announcement that deals with the uncertainty surrounding t/o and/or O&R and I expect a decent bounce from here. An August shipment and payment from Lionenergy could do the trick also

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Why is the debt 2 years? The debt is there until you repay it... even if it is just A$140m for 2 years - which I don’t believe they will have the cash flow to repay in that period of time.. its still $21m of interest plus they issued shares / warrants and paid fees to get the deal done. As soon as they can de-risk this project by brining in revenue and proving they can produce the right product the sooner they can refinance to a market interest rate of c.6.5%

AJM Price at posting: 27.0¢ Sentiment: None Disclosure: Held
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Last 2.9¢		Change 0.001(3.57%)		Mkt cap ! $8.789M

Open	High	Low	Value	Volume
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Price($)	Vol.	No.
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No.	Vol.	Price($)
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0.031	523991	8
0.032	38813	2
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