What I am struggling to come to terms with is how the development capex got so blown out. We are now staring down a barrel of a 4year pay back period vs the 1.8 yr in the dfs.
People talk about this being dirt cheap and ripe for picking in the m&a world or ready for a bank refi. Without actually demonstrating stable production and steady cash generation no bank will want to go near this. Similarly why would the likes of MIN or PLS be interested when they have enough of their own organic growth opportunities without buying a plant that has been fraught with issues. You don't have to look too far to realize bank debt is hard to come by either. Banks are cautious and have always been, this is nothing new.
Talks about Stage 2 need to be put to bed for some time, at the very least untill Stage 1 can wash it's own face day in day out.
For those thinking about Stage 2, can you please provide some constructive thinking about how funding might work. More HYBs + prepay + offtake + equity? I really can't see that working, the interest burden alone would make the whole thing fall over. Hopes of Stage 2 have faded and with it the market cap of this Co.
Focus now needs to be on bringing down costs, steady production and perhaps taking a chunk out of the now 15% debt burden. Management needs to put their heads down, sharpen their pencils and ignore the market noise.
Take a long enough view and this will all be possible, all in good time. This was never going to be an overnight success and people are slowly coming to grips with this.
All imo
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