Show me the money, wishful thinking ??, ask HAV and RXM. Money to start new projects is getting harder to find/finance and getting a lot more expensive, with conditions imposed like hedging. Usually look for partner, but if considered cheap, they will be bought out by a bigger fish with access to billions.
Question more! Can anyone please answer this question, is the project financing wishful thinking.?????? Because MR Market seems to think somethink is up on such a smooth Project Study. (AI produced ?)
QUESTION MORE!
3.5 Project FinancingPre-production funding of approximately US$300 million will be required. It is anticipated that the finance will be sourced through a combination of equity and debt instruments from existing shareholders, new equity investment and debt providers from Australia and overseas and/or potential streaming of the co-product metals. In relation to potential debt funding, New World engaged ICA Partners (“ICA”) to review the PFS financial model.ICA concluded that, under base case circumstances the Project generates sufficient cashflow to comfortably service a level of gearing (debt) that aligns with recently executed financing transactions for greenfield mining projects in the Americas. The supportable level of debt is expected to be up to 65% of the pre-production capital requirements, or circa US$200M. Significantly, sensitivity analysis indicates that the Project retains strong financial metrics across a range of potential downside environments, including increased construction and operating costs, lower than expected price forecasts, or more challenging technical conditions (such as lower processing recoveries). In addition to ICA’s review, other factors that New World has considered in forming its view that there is a reasonable basis to believe that requisite funding for development of the Project will be available when required, were as follows: The quality of the Project, in terms of the grade of the deposit and relatively low level of projected pre-production capital expenditure. The long-term price forecasts for copper and zinc. Significant funding being made available for comparable projects, for example in 2023 Nevada Copper Corp. raised circa US$200M through debt, equity and streaming to develop an underground mine at its Pumpkin Hollow Copper Project in Nevada, USA. The Project is located in Arizona, USA, which is ranked in the top-10 global jurisdictions for mining investment (per the Frazer Institute’s 2023 Investment Attractiveness Index). The Company has no existing debt.The Company’s Board and management team has extensive experience in the development, financing and production in the resources industry.The Company has a strong track record of raising equity funds as and when required. In a series of placements since June 2021, the Company has raised a total of A$72 million to expand the resource base at the Antler Project and to undertake mining studies and mine permit application work to advance the Project towards production.
NWC Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
