Hi Sabine, yes in a PNL statement they would book full revenue and then off set the repayment amount against the prepayment debt. But a cashflow report is not a PNL report, cashflow report deals with the cashflow only. So they show "receipts from customers" or "receipts from sales" , not "Revenue"
So the forecast "receipts from Spodumene sales" is $44.7m, this should be the net figure they are expecting to recieve in cash. Either that or they would have to show the forecast repayment amount as a forecast outflow.
So as long as they ship to the expected customers the expected quantities then figures should come in close to their cashflow projections.
But my post was more to do with why Egeria seemed to think the whole lot was going to Gangfeng.
On your adjusting the agreement, yeh not sure, I would prefer to see them paying back what they owed re prepayments on a regular basis as product shipped rather than a big one off hit at the end. But in a crunch it would be good to know they are flexible.
But it's the other debt that's more of a problem, so hopefully they have a plan to re-finance that. I expect it may be tied in with all those shortfall shares they now have to offer (there was no way they would have been expecting that offer to be fully taken up with Shanshan not participating) so they now have equity to offer at 6c for anyone that may want an equity stake as well as providing finance on more attractive terms.
Two objectives of re-financing should be
1. Lower interest rate
2. Removal of those covenants on earnings multiples that
@Cashmeoutside keeps scaring us with. To me it's more the breaches of covenants that leave the market uncertain rather than the ability to repay the interest.
Thanks
