It's going to fascinating seeing how this puzzle will all be fitted together.
Unless I'm reading into it wrong (quite possible, having been up since 2 am with a sick little one), then it's likely that Hyundai will be the cornerstone investor (repeatedly mentioned and hinted at).
PB said that there will be minimal dulition to investors, as Finance will be based off the project.
However, the 2 are inextricably linked. The fortunes of TNG, primarily rest on Mt. Peake.
If he's saying, Hyundai will come in with 40% of the Finance, say $400m, then the NPV of the Mt. Peake project to holders, will be 60% of the $4.9bn? Which means $2.94bn or so is what it will be worth to the likes of us?
Will that likely equate to a SP of roughly ($2.94bn / $196m) x $0.275 = $4.15 once we are in production, all things going to plan?
My gut feeling is the NT Govt. will bankroll this, whatever happens. PB will do his circuit throughout Korea / Asia / Germany / UK / US, and they'll make up the shortfall. I don't see any reason they wouldn't take care of all the infrastructure costs regardless, which immediately wipes off around $200m from costs (from memory).
Perhaps the penny is starting to drop with a few people.
I'm quietly (well, alright, noisely) confident now that finance will not be an issue. Large organisations can see way past this short term slump. Companies like Woojin, POSCO and Hyundai, don't get to the size they are, without having incredible foresight.
Enough rambling, I need caffeine. Anyone else have a Nespresso machine? What a cheat, but damn they make good Espresso.
TNG Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
