Did anyone else have any thoughts regarding getting Exxaro or another miner in at either the project or company level? It's hard to assess given the detail in the quarterly.
At the project level they may be thinking of a JV of some sort whereby the partner stumps up the CAPEX required for a percentage of the project.
If there is an investment made at the company level that obviously means that the new investor is exposed to Badondo as well as any other discoveries made on our exploration tenements. You'd assume the funds from the investment would be used to finance Mayoko's CAPEX.
My question would be, have they tested the waters regarding being able to fund it all ourselves. If there is a CAPEX of, say, $300m to fund Mayoko, a 70/30 debt to equity funding ratio would mean finding $210m in funding from financial institutions and $90m from shareholders. I wouldn't have thought finding $210m from financial institutions would have been too much trouble considering the likely CAPEX payback period.
EQX Price at posting:
$2.65 Sentiment: Buy Disclosure: Held
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