Hope this helps pbm73.From December2018 quarterly activities report.
Project Engineering and Design
“The FEED contract defines a prescribed scope of work and deliverables for the FEED phase which will be provided to Clean TeQ by MCC based on an agreed schedule of rates. A key deliverable from MCC from the current FEED phase is an update of the fixed Engineering, Procurement and Construction (EPC) contract price for the construction of the Sunrise Project process plant, which is required by the Company before it can consider a Final Investment Decision (FID).
In addition, the Company commenced work with MCC to prepare an update to the overall project delivery schedule, includingt he timeline for completion of the FEED phase currently underway, as well as the project construction schedule and plant commissioning. Although that work is still underway, it is expected that the target dates for FEED completion, and therefore FID, and first production will be subject to some delay as a result of the revised schedule. The Company will provide an update to the market as soon as the new project schedule has been determined.”
Financing and offtake
“During the quarter, Clean TeQ continued to engage with a range of investors and offtake partners regarding potential project financing and offtake agreements. The Company continues to see strong interest in the Project from participants at all levels of the global electric vehicle supply chain. The Company remains confident of delivering a project financing solution prior to a FID in 2019.”
You3OAte comment– from above, the sequence of milestone events is FEED completion, EPC price fix, financing solution, FID.
From September 2018 quarterly activities report.
“Clean TeQ and MCC are currently negotiating a definitive fixed-price EPC contract for detailed engineering and construction of the process plant infrastructure, based on the summary terms and conditions contained in the HOA. The MCC scope (processing plant) is approximately two-thirds of the total estimated capital development cost of the Project.Several critical commercial aspects of the EPC contract have already been agreed as part of the HOA negotiation, with a final detailed and binding EPC contract containing a lump-sum price expected to be agreed during the first half of 2019.”
You3OAte Comment– In September 2018, the fixing of the EPC price was expected in the “first half of 2019”. The optimist would say end March 2019, the pessimist would say end June 2019. In September, I gave them the benefit of the doubt and assumed end March 2019. Silly me.
Then the December 2018 quarterly, which acknowledges a delay to the entire process of FEED, EPC price, financing, FID and commencement of construction. So, at best, FEED and EPC price fix will be complete by June 2019 (my assumption). Hence Cleantec’s comment that “The Company remains confident of delivering a project financing solution prior to a FID in 2019.”
Considering Cleantec’s poor track record of meeting deadlines, it’s entirely possible that FEED and EPC price fix will be delayed beyond June 2019. Only time can answer this question.
