I imagine if there will be a JV between LTR or any potential partner(s); it will be in the new JV entity and after LTR has sufficient cash to fund it with minimal or no debt at all as well as more certainty around what product (whether end or mid-stream) they choose to pursue.
I am unsure if anyone other than Gina and the management at HP know what their plans are. There was a transcript from an AFR podcast (don't believe this was shared here on HC yet - see below) indicating LTR did approached Gina for the institutional placement.
If LTR was to pursue their downstream ambition with a JV partner; I rather it be with the Japanese as I envisage as
@wingedwarrior had pointed out, having partners like Sumitomo bring more value with their experience/expertise, skilled labour in Japan, investment incentives, etc to the table than just deep pocket.
As much I as I prefer it stays local, it (at this time) makes more sense to partner with the Japanese and South Koreans (and have the downstream facility in places with less of the issues currently faced by Australia.
@Scarpa, in relation to your
Post #:70475531
I agree if the price at time of commencing production and price stays above $2000/t USD, LTR could choose to pay down the debt rather than paying out a dividend. as the interest in savings means more fund for its downstream ambition, corporate actions, or even a higher dividend payout in later years but I took the conservative approach and assumed they pay out the loan in accordance with the term of the facilities.
I actually have slightly higher C1 cost at $853/t AUD for 1st year of production; see row 69 onwards. And for your last query regarding royalties; if you refer to the last tab in the spreadsheet, I've snipped a portion of the DFS stating there are private (2%) & Tjiwarl royalties, I left this at 2% for simplicity's sake + 5% WA state royalty = 7.5%
And to a few questioning whether Gina and Chris could team up to acquire LTR like they did with WGO, I previously made a
Post #:59740184 regarding the changes to the constitution passed at the November 2021's AGM and I've highlighted what I believe could prevent this -
see highlighted in yellow & green:
Make what you will, as I'm not well-verse in and around takeover - LTR's BOD foresaw this and I believe this was put into the constitution to prevent a change in control of the Company should say MIN acquire and later sell it's stake to Gina (or vice versa) and ended giving one or the other 51% interest in LTR.
(20min delay)