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Ann: A$315 Million Fully Underwritten Equity Raising Launched, page-18

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tbirdsrgo

13,608 Posts.

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02/02/24

08:02

Post #: 72196820
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Originally posted by Robot42: ↑

Not necessarily. They previously updated us to say the total cost of the project was circa $1.5b including contingency. There is debt of $900m+, and convertible notes of $2-300m so there was always a short fall of $200-300m. Sorry I don't have the figures in front of me so going off the top of my head. I had hoped the recent Iron Ore prices and apparent stabilisation in delivery costs would decrease the value of the equity required but clearly that hasn't occurred.

I assume this is mostly a requirement of the debt drawdown, and potentially was increased by NAIF after other projects they funded went broke and we revised out cost estimates last year.

On future value and all that... I had some rough calcs suggesting $2-4 range in the future depending on salt prices based on a couple of different metrics - dividend yield of approximately 5%, and P/E of 15. These are a bit higher than you'd normally see in a mining project, but that reflects the 'limitless' salt and low ongoing operational costs that make this just a long term low risk play for investors like Australian Super.

So... with 3b shares on issue that calc is coming out at $1.88 per share. But that is at some point in the future when income is very stable and debt is covered, so 5+ years after opening? I'd suggest we will be in the $1-2 range long term.

Much harder to predict the next 3 years until we see salt sales coming though however... maybe 30-50c when ponds are filled and all approvals sorted? That is pure speculation on my part.

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Binding offtakes will also play a part in the shorter term.

BCI Price at posting: 27.5¢ Sentiment: Buy Disclosure: Held
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Last 28.5¢		Change 0.000(0.00%)		Mkt cap ! $822.1M

Open	High	Low	Value	Volume
29.0¢	29.5¢	28.3¢	$478.4K	1.656M

Buyers (Bids)

No.	Vol.	Price($)
6	84248	28.5¢

Sellers (Offers)

Price($)	Vol.	No.
29.0¢	20000	1

View Market Depth

No.	Vol.	Price($)
6	84248	0.285
31	536164	0.280
6	167457	0.275
8	105467	0.270
5	27174	0.265

Price($)	Vol.	No.
0.290	20000	1
0.295	30000	1
0.300	340947	4
0.305	332765	7
0.310	108799	5

Last trade - 16.10pm 04/10/2024 (20 minute delay)

BCI (ASX) Chart

Ann: A$315 Million Fully Underwritten Equity Raising Launched, page-18

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

BCI reaches close of funding facility for salt-first part of Mardie project

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

Buxton projects new graphite province discovery at WA Narryer play

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

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Ann: A$315 Million Fully Underwritten Equity Raising Launched, page-18

Top Stories

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

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BCI reaches close of funding facility for salt-first part of Mardie project

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