My apologies, correct thread this time.
Reading between the lines, I like this update for three main reasons.
Firstly, given that
positive feedback has already been received from the Dept. Of Mines in relation to a
'favourable technical opinion' (FTO) on the DFS, and CATH having simultaneously paid the US$20m break fee
, I'd opine that the FTO is now a formality & so too the ML (following the favourable outcome for the last of the 4 key elements required).
Secondly,
'a meeting of Council Ministers is to be held shortly to deliberate on the award of the Mpiana Mwanga HEPP agreement and Prime Ministerial Decree for the Collaboration Development.'
Thus given the above points, am thinking that one to two announcements could drop at any moment, and those hoping for 'no news for at least 30 days' may well get a surprise or two.
[sidenote: perhaps those responsible for today's late and aggressive sell off at an 85% discount (vs peers on an EV/t Li2o resource basis) may well have to reconsider their strategy come this (FOMO) Friday.
Thirdly, re: Project Debt Funding, and subject to closing the deal with CATH, '
more than 50% of project funding is secured enabling a FID.' This is good news IMO as it means that the FID isn't subject to further finance.
Furthermore,
'the FID will kickstart project construction and ensures Dathcom will have sufficient equity capital to fund the first 6-8 months of project construction capital', with Financial Close ("FC") for debt expected in Q2 2022.' i.e., once FID has been ticked off then it's all systems go.
The update also states. '
The deal with CATH has significantly de-risked the project from a debt financiers perspective and introduces additional appetite for the Manono Project debt financing requirements.'
Reading between the lines, IMO this suggests that debt funding for a potential 10mtpa operation (should a scale-up operation be adopted be approved) will likely be a formality and the continuous de-risking of the project should attract excellent terms from pan-African DFIs and the like IMO (looking for mid to low single digit finance here).
After all, the project should have been further de-risked by then via HEPP & Collab. agreements, ML award, positive BFS, FID, a favourable SEZ, and "FC" to occur after FID & the commencement of construction.
GLTA
Cheers
Elpha
