interesting project they have. I'm a new shareholder and coming up to speed on the projects, few things I'm mulling over: 1. don't you think they could get more than 50 debt into the refinery - I was thinking say closer to 70 debt provided they have a decent offtake and banks get comfortable with completion of mineco 2. for their choice of partner I hope they consider one that can ideally bring debt too. ecopro can maybe bring kexim (i don't know them well) but jbic from Japan and cdb/cexim china finance Vietnam projects and understand vietnam risk well and they may come if there is Japanese/Chinese offtake and epc 3. on the timelines they seem to be running for mine/processing restart and refinery completion at the same time in 2024. that will mean they will need to be financed in tandem or at least refinery lenders will be worried about delays/completion/performance risk on mineco restart as that will impact their debt service by refineryco. this would be more complex than doing the mine/processing restart first, does anyone know why they can't do mine first? 4. the timelines are pretty tight. I see from the hc posts that people think highly of the team. 18 months to construction start for a complex two project financing where u need to solve equity and debt and now all the ESG plus covid is pretty tight. I'm not down ramping it's a legit question as to whether this management' has delivered on other deadlines. I guess this is where the plakdis guy banker on the board needs to earn his $. 5. on dilution if they had Chinese EPC then you can sometimes have them take an equity stake with us having an option to take them out at completion. that avoids dilution. 6. finally on the offtake I think given financing risk is key for this project and so the key will be bank ability?of offtake and so may mean may not get the best pricing. going to need to be a big name on the other side of offtake.
anyway have just thrown a few thoughts out there - still a little jumbled. as I said I'm coming up to speed on bxs and still in accumulation mode so trying to get my head around this co and so may have misunderstood a bit.
BSX Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
