Highly likely the KMP will be running at full capacity in 2023, Dubbo mine is not expected to be completed until 2027 at best, how does the company grow the company in that 4 years and actually contribute to the costs of Dubbo? Build more plants and get more income is the answer.
Dubbo, this will still progress i believe, but we are miles and miles away from the couple of billion required, if you read through the last couple of years of announcements from ASM, they have been in discussions with investors and end users for offtatakes for years, with no success.
We need cash for Dubbo and the only way we are going to get this is build more plants, unless an overseas government come in with a blank cheque book.
Why have the timelines been pushed out for Dubbo? No investor or lender ASM are currently speaking to are willing to stump up the couple of billion required, we need to contribute to the costs.
We need to build one or two more metal plants over the next couple of years, we will then have a solid business with solid profit.
3 plants, $180m profit per year what could we borrow on that to contribute to Dubbo? $1bn?
This is a simple realistic plan what is achievable in the next couple of years…….
One question for you, if we don’t do the above or similar, where do we get the couple of billion required for Dubbo from?
ASM Price at posting:
$1.48 Sentiment: Buy Disclosure: Held
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