Could not agree more.
The other thing that I fail to understand is the lack of return for the Investor.
If we assume that SHIP has 20M MT. CFR China costs will be $60 + State Royalties of $6 + $4 Royalties to original stakeholders = $70.
If the AUDUSD goes to 90 cents and we assume a long term Sales Price of 5% below platts = $110 AUD
Margin = $40/MT
Therefore the funder makes $20 and the FAS makes $20.
The funder brings in $325M for a payback of $400M. That is a profit of 75M or 23% over the life of ship. That would not even if pay the bank interest.
I know that there is upside to SHIP and possibly SHIP North.
Maybe KR is a great negotiator.
It does not make sense that the funder would fund 80% for such little return.
I am not being negative but why would the funder take all these risks especially with no unconditional port access.
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massive writeup in todays west, page-56
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