At the end of the day, they helped fund the BFS, which previously we needed a customer offtake (Mitsui) $100M which allocated partial to the BFS to secure our super grade. Now that is funded, per the companies schedule, offtakes are scheduled to be locked in Q1-Q2 2022. Once we see similar funding put up front the capital cost and debt structure will be much more achievable. Whether they reduce y1 output for a smaller capex cost could be another lever. But clearly we won't be going to China sale of the super grade, it will be for Europe, Middle East and other Asian companies (per the LOI 12-14mpta signed up)
One offtake and we will be valued on OPEN >100m (15c+) so for newcomers, they are getting a very lucky opportunity at current prices with no dilution for another 12 months. there are junior explorers valued at a higher EV then HIO right now, yet we have more proven resource to come.
HIO Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
