Volume, page-617

Hi DDBB TB and DUV

POS mentioned a mix of debt and equity capital in the 21 Dec update.

I agree with the idea that debt capital comes from the market.

Imho, the story is one of supply not price.

So possibly, POS could have an offtake agreement with a friendly smelter or friendly energy company, or EV company etc (or maybe many agreements) to guarantee supply at a variable price at any time - eg LME average price per month plus a premium. Global nickel market will set the LME avg price. No need for POS to seek bidders.

I accept that the offtake partner could be an intermediary - but why?

Further, signals by EV manufacturers (eg Tesla) and Ni refiners indicate a desire for some vertical integration.
This can be accomplished by an equity stake and a friendly seat at the board table. No need for consolidation from takeover.

Hence my preference for an equity stake by an offtake partner. I'd also prefer a big player.
For example BP is an oil explorer, and a fuel retailer. BHP is an explorer and supplier of iron and steel, etc. Rio also. The list goes on.
This would help 'stabilise' the share price also.