From a quick glance, they didn't mention the how much the Moranbah project is losing. I am no expert in this, but for QPM its more like, "I secured my gas supply for my main revenue source, but now with the extra gas I might be able to monetise it in a different way."
So to me the management needs to ask themselves, is the cost of producing this gas gonna affect the margins of the TECH project in a significant way, because if it is then they shouldn't acquire the project.
But now we know they see economical feasibility in it, so that means
1. Moranbah Project will operate at a loss but the cost will be negligible/little impact to the TECH project's margins, and if there is extra gas, they can always use it for phase 2 and beyond.
2. If the sales of the gas alone can bring the Moranbah project to the black on its own, then you have a self sustaining energy division that means more EBIT for the broad company; and a road path into the energy sector.
To me its a clear win for QPM regardless. But what really surprised me was the ambition to monetise this in the first place.
The current sad state of affair for many junior mining developers in Australia at the moment is, if you cant build a mine, you take that remaining capital to gamble on a lithium tenement in hopes of striking white gold. Sure, it pays off for some like LRS. But I rather a management that aim for the actual long game like the how corporations in East Asia do, that is what QPM is aiming for.
Sort the funding of TECH project and the equity dilution in a good way, you have a game charger company on the rise.
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