To give a non snarky answer. Whilst QPM DFS will be at the mercy of inflation and an elevated Capex, issues receiving capital is not as big a risk as what Hawson's would be seeing, and following this GM deal so close to DFS release I am personally feeling confident in their abilities to acquire the necessary funding from the market.
The nature of Hawson's high volume low margin business makes them very susceptible especially given the iron ore price outlook, receiving said funding is therefore much more difficult for them. I think it obvious that battery and rare minerals are hot right now, and whilst nothing is a given, there are a few factors which has QPM (in my eyes) looking favourable to come out of this ok.
1. The commodity and business, a commodity forecast to grow in demand, and a low cost (relatively) and high margin business is attractive. TBC in DFS
2. Government and credit agency support, The government appears to behind the Tech project, publicly voicing their support for it. NAIF is progressing through the due diligence, and we got conditional commitments from EFA for funding. There is similar interest from the Korean K-Sure, and Stephens presence in that small circle which met with the Korean president in his trip here is a positive for his clout.
3. Three tier 1 companies providing a total 100% offtake, with all three having in addition a stake in the company is unheard of. This provides security for funding, and these three players vote of confidence, especially with GM finalising theirs so close to DFS release is promising that financials and the project as a whole are looking at the least acceptable.
4. Their work with Hatch to provide performance guarantees on the QPM process will give further confidence that this new tech will work, which would appear to have been seen as a risk for financiers
5. Stephens words in his recent interview on ****** being along the lines of "we are comfortable with our funding arrangements", I believe also mentioning potential funding from agencies in Canada and Germany? can't remember that last bit, but there was something along those lines. Being voiced so close to DFS again breeds confidence.
Nothing is a given, but those reasons above are why I see QPM not having those same issues you would see at Hawsons.
QPM Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
