Yes@tropic
"DP is saying from his email that construction will be finalizedby end of June 23 and then the commissioning process begins (will take about 3months) for production start in Oct 23." (Could still be end of September)
Call me the eternal optimist, Ithink the options are still in play. There are 100,s of millions of options tobe converted by the 26th October and those finances will be very welcome. Ifcommissioning starts end June and finished by even early October, by then Iwould expect the options to be in the money fairly easily if LMG progressively clearly communicate each of the 5 stages of commissioning, as each milestone is reached. The s/p could progressively rise as each mielstone is put to bed and the anticipation builds. Then the options could be in the money even earlier than August? (Perhaps)
Early/mid October could be a massive scramble to get options converted. The otherincentive for LMG to have the demonstration plant commissionioned ASAP relates to a little snippet I foundwhile looking back on announcements. Given that the statement in the announcment is from 2021, things could have drastically changed. I would like to hear your thoughts please. The interest rates are "12% on its $23M project finance facility with RnD Funding Pty Ltd (“RnD Funding”), previously announced on 14 December 2021."
"Depending upon the timing and amount of R&D tax refunds to LMG, the effective interest
rate on the project finance facility to 31 October 2023 may be closer to 10%."
See below:
1 UPDATE ON REVISED TERMS OF M PROJECT FUNDING
1/12/2021Debt refinance "LMG expects it will be able to refinance the remaining balance of the debt facility around October 2023 at an interest rate of circa 6% pa, once confirmatory operating data from its 1,000 tpa initial plant has been generated over a 6 month period." 6 months operations from Sept/Oct 2023 = March to May 2024 before debt can be refinanced
Obviously a reduction from 12% to 6% interest rate is massive and if that reduction is delayed by 6 months.
Anyway, just thoughts and definately not financial advice to anyone.
Regards
Ken
