$1.00 price target, page-52

I totally agree that Alliance do not have the money.

In my opinion, they are getting Bank Funding of a Top 100 Bank for example Credit Suisse or JP Morgan. The Bank Funding requires 20% deposit and will take security over the JV assets (SHIP). FAS put up $65 Million as the 20%.

Alliance then pay off the Bank Debt at less than 10% per year. Once that is extinguished they will keep the profits.

Therefore id SHIP has 20M MT with a margin of $40/MT = $800M. 50% = $400M. If we assume that $350M will cover loan and interest, alliance will make $50M for not putting out any risk.

This is all predicated on the fact that FAS can raise $65M, which I have concerns they can.

No lender/ offtaker will lend withoiut security or port access. FAS have to deliver SHIP into JV without any encumbrances.

DYOR