Looking at the volumes Friday & today, I don’t think many people have watched the presentation or realised the implications of what was said.
Having the BAI’s credit committee approving our US$15m loan is massive news. Firstly it’s approved, secondly it’s $15m not $10m. As chuk suggested the CEO probably wants a photo shoot and certainly would not overturn the credit committee’s decision. he just wants the glory.
Even without the IDC’s $14m, we’ve now raised $25m with $24m left to spend on the project ($28m going straight to stage 2).
There was also a lot of other useful information Lindsay spoke of in his presentation.
He said:
“ ..Also having some interesting discussions on a sales guarantee for the 1st year, after that we can use the new port to export rock which gives us a lot of forex security & alternate sales”
I’m not exactly sure what he means by that, could be like a mini offtake agreement with possibly an upfront deposit?
I wonder if that comment has anything to do with gradecontroller’s comment that the Carrinho MOU conversion to contract may not be required by IDC
“All our financiers said go straight to stage 2” so not just BAI, but SWF + IDC want them to go straight to stage 2 - sounds a sure thing to me.
“Local financiers are very keen for us to make local product, but they are also very keen for us to export so we can bring in forex to help the economy” I wondered how the Angolan Government would see us exporting phosphate as it’s a limited resource, sounds like they’re fine with that.
Lindsay also said:
“..We’re getting some more licenses which will add to the 20 year life” previously they said they’ve applied for more mining leases, now he says “we’re getting....” As I’ve posted before, having the SWF invested IMO makes these new leases a sure thing.
They are talking to other “Atlantic region” potential export customers.
Re GA Lindsay said we can make aqueous ammonia for sugar plantations, they have mentioned before Biocom could potentially take up the whole production from one Talus plant. Unlike ammonium nitrate, we would virtually have no capital expenditure to make aqueous ammonia - it’s virtually what comes out of the Talus plant, so this GA project might happen sooner than we think.
