IF THEY CANNOT RECEIVE FULL CAPEX FUNDING VIA A DEBT FACILITY ($100m)
Given the processing infrastructure on hand and the current 260ktpa capacity. Would it not be more accretive to the company to explore utilising the alleged debt facility (60% of total CAPEX requirements) to fund the necessary improvements and then FCF the remaining 40% over the first 6-9 months of production in 2026 whilst the plant is in ramp-up.
In today's pricing environment the FCF on a full year of production post-tax should sit at a rough and conservative estimate of $210m AUD....all things considered the plant in ramp-up with minimal or part of the improvements laid out should be able to acheive $50-$80m FCF....
Given the supposed supply restraints of Sb. Why would we rush Hillgrove to be a full-spec operation at the sacrifice of 10-15% dilution to LRVs register...
LRV Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
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