working through the stipulations and building rough calculations for repayment. There is a lot to like about this announcement. Ultimately confirming that reference rate which one would assume is the central bank rate that varies over the course of these contract terms.
Thoughts
1. First payment Q4 2025
2. First early repayment Q4 2026
3. No limit of early repayment amount provided last payment is achieved Q4 2028. With this WAF could smash the loan down so remaining balance and accrued interest is minimal
4. Unhedged
5. 18.66M in PPA (12.44x1.5M)
6. First drawdown in another 3-6 months. Meanwhile WAF are still building a large bank.
7. Most important factor, significantly de-risked
8. IF recession looms in 2025 then variable central bank rates will possibly drop which would assume that WAF's quarterly interest drops also...This also works the other way if further rate rises occur...the likelihood of that happening 2 years from now would be slim
9. Debt Facility - no further dilution required
10. Clear pathway to 400k+ Oz P.A
WAF Price at posting:
83.5¢ Sentiment: Buy Disclosure: Held
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