I must congratulate FAS management on arranging finance for SHIP and securing an offtake agreement.
But what exactly does it mean?
I am assuming that the offtake agreement did not come with a deposit or cash payment. Furthermore what price has FAS sold the 10M MT for? 10% discount to 58% index + bonus for product being higher than 58%.
Now the funding, only comes in after the 20% has been raised, so therefore without $65M being raised no funding of SHIP would occur.
If FAS can raise $65M, the only asset they could offer an investor may be part of the JV. If we assume that for $65M an investor gets 30% of JV, then FAS would only have 20% left. On a profit margin of $40/MT that is $8/MT. On 20M MT that is $160M or approx. 12 cents per share, before $10m - $15M debt, marketing fees.
On 2M mt per year that is $16M in revenue for FAS and if we assume Profits of 12M by the time salaries and consultants fees are paid, that is $60M - $75M market capitalisation or $0.05 per share.
Time will tell. Looking forward to Annual Report due soon.
Wishing Management all the Best.
- Forums
- ASX - By Stock
- FAS
- where to now
where to now
-
- There are more pages in this discussion • 23 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
CXO
Core Lithium narrowly beats guidance on FY24 spodumene production but 1Y returns still shattered
FWD
Queensland's housing crisis an opportunity for ASX builder Fleetwood – and taxpayer cash a safe harbour from the storm