QPM

15.6%

3.7¢ queensland pacific metals limited

Ann: $5 Million Government Grant, page-28

First 28 Last

Share
Profile

Follow
highlvlofswag

229 Posts.

140

18/05/23

14:46

Post #: 67845391
Share

Originally posted by BobbyMorane: ↑

I very much doubt we'll have only 2.2-2.3bn SOI when construction is done.
We have 1.75bn SOI at the moment, plus 140m options and performance rights. Some of the performance rights will lapse, so let's say approximately 100m options and rights.

That's already 1.85m SOI, fully diluted. Now, if we hope for a Capex downgrade to 1.9bn$ (which is a fair assumption IMO) and with 75% debt funding, that leaves 25% equity or 475m$.

If that's the go, that's still another 1.6bn shares @ 30c or 2.4bn shares @ 20c, which would propel us to 3.45bn SOI or 4.25bn SOI respectively.

Now, if they accept another 250m$ in funding, that would reach almost 90% from debt and it is a much better scenario from a shareholding perspective, which then only put us at 2.6bn SOI and 3bn SOI respectively. (Still for 30c and 20c raises)

But that would raise a few questions :

- What is the acceptable debt limit from current financiers for this project ? You can't pile up debt without limit, the package has to make sense risk-wise and be accepted by all parties involved.
- Why management kept bringing up 60%/40% in interviews if they intend to go with 90% debt ? Just say "We are working on the best possible package that minimize shareholder dilution". Then you don't scare away potential investors with a looming 800m$ equity raising.

Overall, I'm a bit confused at their communication around the funding.

Anyway, as someone said earlier, even if we end up with 4bn SOI, this is still a good investment proposition considering the TECH project - stage 1 should be contributing to ~4bn$ in market cap once in steady state I reckon.

This second half-year will be the most interesting one since the inception of the company for sure.

Expand

Equity side won't be purely just from increasing SOI. Potential for prepayments, government grants (which is looking highly likely) and I know JV requires SOI increase but, if its a JV this will be a sticky investor which shouldn't be dilutive on the open market.

Someone correct me if I'm wrong in regards to JV comment

QPM Price at posting: 13.3¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

The market's shrugged at China's stimulus measures all year. Why is this one different?

COD

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

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

ACW

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

The winners & losers on market if negative gearing were gone

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

There are more pages in this discussion • 67 more messages in this thread...

First 28 Last

Add QPM (ASX) to my watchlist

(20min delay)
Last 3.7¢		Change 0.005(15.6%)		Mkt cap ! $93.28M

Open	High	Low	Value	Volume
3.3¢	3.7¢	3.3¢	$285.2K	8.136M

Buyers (Bids)

No.	Vol.	Price($)
4	199576	3.6¢

Sellers (Offers)

Price($)	Vol.	No.
3.7¢	744524	6

View Market Depth

No.	Vol.	Price($)
4	199576	0.036
3	650672	0.035
4	1113792	0.034
1	303030	0.033
5	211250	0.032

Price($)	Vol.	No.
0.037	744524	6
0.038	1286610	9
0.039	1409404	4
0.040	454478	7
0.041	15467	1

Last trade - 16.10pm 27/09/2024 (20 minute delay)

QPM (ASX) Chart

Ann: $5 Million Government Grant, page-28

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

The market's shrugged at China's stimulus measures all year. Why is this one different?

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

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

ACCC seeks Olam divestments before it can buy Namoi Cotton

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

The winners & losers on market if negative gearing were gone

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: $5 Million Government Grant, page-28

Top Stories

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

The market's shrugged at China's stimulus measures all year. Why is this one different?

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

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

ACCC seeks Olam divestments before it can buy Namoi Cotton

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

The winners & losers on market if negative gearing were gone

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News