The Secured Overnight Financing Rate (SOFR) is subject to...

The Secured Overnight Financing Rate (SOFR) is subject to variation but currently sits at 5.32%. Meaning the interest rate could be about 12.09%. I have used a flat interest rate of 12.09% for the below analysis.

Assuming MNB draws down the full US$14m to construct the plant, quarterly repayments will be about $950k over a five-year period. If we further assume the remaining US$12 million needed to get us to production is received under a loan with similar terms, we can expect additional quarterly repayments of about $810k. This implies a yearly debt financing cost of about US$7m.

Using the DFS's operating surplus figures and including the above-mentioned debt financing costs, I get the following positive cash flow for the phosphate project in the first five-years:
- US$16m (AUD$25m) in year one
- US$18m (AUD$28m) in year two
- US$23m (AUD$36m) in year three
- US$38m (AUD$60m) in year four
- US$55m (AUD$86m) in year five

These figures do not include the potential upside in revenue from the plant expansion which is expected to cost US$1.7-3.3m.

Good job Lindsay and Co! It looks like we are on the home stretch.

*1USD = 1.57AUD