My recollection is the Covalent Lithium will be the debt...

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FvoLvo

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25/10/18

21:05

Post #: 36265105
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Originally posted by binwood ↑

What an exaggeration. I sold in the 60's. I never said anything about it going bye bye at 0.37c, that was during the legal drama when I was a buyer.

Back in the middle of last year I said Mt Holland + Refinery would need about $1bn in capex and that they were a long way from fully funded. I said the NPV would be c. $3bn and they wouldn't produce until 2020/21. I got laughed off the threads. I can go back and find posts to prove all of that. Funnily enough that's exactly how it played out.

I obviously didn't foresee the pump that KDR and the Li sector as a whole got and I already admitted that on these threads somewhere back near $2.

And finally, why does this have to be a negative. Takeovers aren't necessarily a bad thing. Especially if done early and at a premium. It's realising profits early and getting the benefit of time value of money.

But honestly, anyone who thinks there won't be any equity in the raise is kidding themselves, even if it's just money for WC and interest payments on $400-500m debt. That is $20-25m a year at 5% (and non SQM debt won't be that cheap). SQM will get their equity stake.

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My recollection is the Covalent Lithium will be the debt chaser/holder not SQM or Kidman. One rate shared between SQM and Kidman. I’d expect the rate to be pretty good if SQM are willing to lend their own equity out at something near their WACC to Kidman to keep things going.

KDR Price at posting: $1.07 Sentiment: Hold Disclosure: Held
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0 Great analysis

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