Ann: Joint Venture with Ganfeng - Overview, page-89

Let me put a different spin on the "valuation"

• the project requires $194m for construction to commence - $130m equity and a loan of $64m
• From GangFeng point of view , they are risking $194m for the project to get off the ground in 2-3 years time.
• the GangFeng share price fell on the announcement- not sure if there were other contributing factors, so if their investors didn't like it , it must be a good deal for FFX
• 
  
• THE STRUCTURE
• FFX owns 100% of Goulamina holdings PL which in turn, initially holds 100% of Mali Lithium BV
• GangFeng will subscribe for 50% of the shares in Mali Lithium BV(call it a placement) for $130m (it would have been better at $194m and I'm sure MQ tried)
• GangFeng will lend 64m to Mali Lithium BV

THE BALANCE SHEET day 1 Mali Lithium BV
Initial project value $260M
cash in the bank $130M
EV = $130m

THE BALANCE SHEET On completion of construction say year 2
Project value $260M
cash in the bank NIL
Mining Plant $194M
Total Assets $454m
less loan $64m

Net Assets $390m

AND then we have the Demerger which will require a prospectus
My guess to raise between $25-50-100m at say 50c or $1.00