The project appears to cost 2.5 billion. It would be interesting to see if it is common practice to exchange funding for cheaper gas. ESG selling cheap in exchange for funding would get right up STO as ESG would get the full benefit of funding and STO would not get full value on their gas.
Could ESG go to the debt market with repayments through proceeds from power generation?
Even if we get diluted by another billion, the profits gained from going all the way to LNG will far outweigh the negatives.
If a GSA with STO was projected to raise the shareprice to around 2.50 (at the upper end), a GSA with a Japanese partner would theoretically do the same. A cap raising at that price would be acceptable I think. If you've got 5 partners (random number) all you need is 17% to maintain control. We don't need 50% here, we can sell the buggery out of it and still collect profit from selling gas into the project. 20 billion in sales over 20 years I believe. The profits are eye watering, and that's without the economies of scale that come with more output.
ESG Price at posting:
84.5¢ Sentiment: Hold Disclosure: Held
