I am a numbers guy, to me if stage 1 can't wash it's own face...

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Egeria

765 Posts.

1064

07/08/20

13:16

Post #: 46378178
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Originally posted by Silent-Bubbles ↑

Not sure if that scale of ratings even means much at the present moment.

You should be more telling your story to the myriad of Governments including Australia who are having to spend upwards and over $200 Billion in order to help alleviate theCOVID Crisis ......CC + we'll call it ...

And just as they ( Governments ) can borrow at astonishingly low rates of .8 of a percentage against 10 year bonds and less for 5 years bond - So to can , and will much larger businesses and corporations involved in many of the EV Industries supply chain functions ....as well as many other facets of the economy. And so we know that Altura on it's own perhaps can't .....but there are many many Large Organisations with Treasury Departments who can.

Things have and will change in this regards and in respects to many areas of traditional finance due to COVID-19. Especially where they might be seen to have significant economic and strategic benefits to a sovereign state or territory moving forward.

At the very least I would think that note holders who are on a significantly better wicket than MOST could be just a little more than receptive given the effects of COVID-19. Who knows , they might even be willing to loan more for less and against more ' output ' ....ie Stage Duex !

So I prefer to remain more ' open minded ' as an investor to ALL the possibilities......

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I am a numbers guy, to me if stage 1 can't wash it's own face how would it support stage 2?
In an ideal world stage 1 should at the very least be able to cover the interest payments on additional debt taken out to fund stage 2. If that can't happen then clearly it is a loss making exercise.
Money would be better spent getting recoveries to 70-75% and lowering costs untill stage 1 is self sufficient. As it stands the operation is still reliant on equity being injected.

So much wishy washy stuff being posted at the moment. At what debt size, interest rate and sales price could ajm repay the existing facility on pls equivalent terms. 5 year legal tenor with c.30% balloon. If people want to say yes ajm will get 5%, work through the exercise and see how realistic that assumption is.

As far as lending goes, funding costs for every commercial lender in USD have gone up materially in the past 6 months so your argument doesn't hold water. Look up liquidity premiums.

Aimo

AJM Price at posting: 7.2¢ Sentiment: Hold Disclosure: Not Held
6 Upvote

3 Great analysis

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