EOS Charts, page-2410

Well BG was clear- there is no need to fund it all upfront, the satellite contract should be staged in terms of payments according to milestones, the equity value of the project goes up as customers are signed, customers are signed as construction commences, there is clearly a LOT of interest with over 200 MOUS signed. So EOS is talking to equity and debt providers, but will potentially fund initial costs upfront (eg with the new $35m work cap facility), sign customers, then SELL down equity at a higher valuation. Debt is cheap atm so can fund initial deposit, get contract signed with the space construction element, then this triggers the MOUs to then Binding contracts (FOMO anyone...?) and then equity value goes up, then you sell down and potentially to a wider pool of equity capital (Eg more risk averse infra funds or the like who want to see binding customer revenue). It also puts the bargaining power back into our court (hey we can do this alone!). This is smart and the right course of action if the equity contributors are playing a harder bargain (same as a our shareholders who are saying Spacelink costs more than our market cap so why not) and to maximise shareholder value. Chicken and egg situation needs to broken and EOS has a pathway. 30 days to signing the satellite contract, give or take.

I dont take BG for someone who is a risk taker- so for the Board to sanction a satellite construction contract that locks in a in service date, they must be confident of signing the $200m in annual revenue needed to get to cash flow even stage. We will have $100m in cash by the end of the year. Its not as if we are a speccy miner getting a nearology project off the ground in sub-Saharan Africa. Although speccy miners seem to be get more leeway than EOS in terms of execution timelines.

I suggest people understand the Spacelink benefits to customers and what role it can play in the space economy to assess whether Spacelink can sign customers up. Its a simple as that. If you get the customer the rest is easy. And the ROI for the customer is potentially massive in terms of extracting value and utility from their existing and future space assets. Spacelink is as Neil Carter puts it the picks and shovels of the new space economy.

Also I didnt see ANYTHING in the half year report that was unexpected, so surprised by the market reaction today.

Up to BG to deliver now over the next six months. They have managed the current growth expansion brilliantly in terms of ramp up of manufacturing to a $200m per annum revenue base. Im backing them to recreate this to the next stage of growth. Its all binary so we shall find out soon enough.