Some nice posts @sabine, factual responses are always very much appreciated.
Somewhat mind boggling the person constantly pressing such questions hasn't heard of Azure. But never mind.
Just to get things straight here, Azure's role here is a debt advisory one as noted in the accounts "to assist the company in its facility refinancing". Azure is one of the best regarded shops in this space in WA.
This differs to the m&a advisory the Macquarie boys are arguably better known for and they too have had mixed success in Lithium.
Debt advisors typically assist the company with preparing a request for proposal 'rfp' to be issued to banks inviting them to respond. Azure has an excellent network to leverage and can steer the proposed terms in the right direction. At the end of the day it will be numerous banks doing the bulk of the heavy lifting on the credit side of things. As far as the individual banks' experience goes, well there isn't much to boast about from the local banks. Internationals Bnp boc hsbc and a few others are more familiar with the space. Not surprising really given they have a wider network and possibly even bank some of the offtakers, meaning a lot of the background work is already in place.
That aside at the end of the day it is really just another mining project with the key issue at play being market risk.
Sensitizing inputs and debt sizing is one thing and pretty straightforward stuff across mining projects, understanding market risk in lithium is the tricky part, especially given the recent offtaker issues in the press.
Aimo
AJM Price at posting:
6.8¢ Sentiment: Buy Disclosure: Not Held
