Australia's largest stock trading and investment forum Australia's #1 stock forum

1MC

0.00%

3.0¢ morella corporation limited

The first announcement New investors for the long term and new...

First 65 Last

Share
Profile

Follow
Rupfel

10,778 Posts.

1417

20/10/20

18:52

Post #: 48245936
Share

Originally posted by Egeria ↑

Many reasons an advance payment wouldn't work on its own.

Advance payments are self liquidating and typically shorter tenor than corporate or project debt. In other words, it would require larger periodic repayments squeezed into a shorter term facility. AJM was not in a position to pay interest let alone make any additional repayments on existing debt so how would it pay back an advance payment with a more agressive repayment profile.

None of the offtakes (by volume) are large enough to support an advance payment of the size you are suggesting.

That isn't to say an advance payment will not be part of the restructure plan. It may well be and it would help with the whole debt piece as it demonstrates to incoming lenders a financial commitment from offtaker(s).

As @Rupfel just said the Ganfeng offtake is due for renewal next year, being AJMs cornerstone offtaker and one with the clearest link to downstream battery manufacturers and EV OEMs it would be a good time to lock in the offtake with an advance payment to provide the additional working capital on top of the intended institutional CR.

The advance payment would require incoming lender consent, either to share in the security pool or rank above core debt in cash waterfall terms. A small price to pay in exchange for a demonstrated financial commitment from the offtaker or what I call the glue that makes the offtake stick.

Aimo

Expand

The first announcement
New investors for the long term and new contract with Ganfeng mentioning Tesla VW BMW, LG Chem etc add in the human element and AJM will not be 4 cents.

AJM Price at posting: 7.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

IMA

Issues emerging as Australian companies tackle critical minerals challenge

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

There are more pages in this discussion • 82 more messages in this thread...

First 65 Last

Add 1MC (ASX) to my watchlist

(20min delay)
Last 3.0¢		Change 0.000(0.00%)		Mkt cap ! $8.364M

Open	High	Low	Value	Volume
3.0¢	3.0¢	2.9¢	$17.16K	584.2K

Buyers (Bids)

No.	Vol.	Price($)
1	81157	3.0¢

Sellers (Offers)

Price($)	Vol.	No.
3.1¢	374484	6

View Market Depth

No.	Vol.	Price($)
1	81157	0.030
2	347644	0.029
2	85700	0.028
1	61938	0.027
1	37074	0.026

Price($)	Vol.	No.
0.031	364484	5
0.032	92168	2
0.033	378549	3
0.035	200000	1
0.040	40000	1

Last trade - 16.10pm 11/10/2024 (20 minute delay)

1MC (ASX) Chart

The first announcement New investors for the long term and new...

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

Defence MOU for propulsion systems pushes Aurora Lab shares higher

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

Cauldron Energy reports "excellent" uranium assays in latest drill run

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Issues emerging as Australian companies tackle critical minerals challenge

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

NRW Holdings inks $109M deal with BHP for works at Jimblebar

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

The first announcement New investors for the long term and new...

Top Stories

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

Defence MOU for propulsion systems pushes Aurora Lab shares higher

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

Cauldron Energy reports "excellent" uranium assays in latest drill run

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Issues emerging as Australian companies tackle critical minerals challenge

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

NRW Holdings inks $109M deal with BHP for works at Jimblebar

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News