He is only highlighting a worst-case scenario with a low possibility of it happening, and that's a valid concern, it's an option that's certainly not off the table (which we all hope won't happen).
With regards to the US$25mill non-binding debt facility from LMC, what is a likely scenario to occur imo would be MNB signing a binding off-take agreement with the Angolan government. Even if there is no prepayments from the government, the binding agreement will fulfill one of the conditions of the LMC debt facility. As for the other conditions that aren't so clear, it's probably most (or all) of the construction agreements (or anything related) that is highlighted in the Quarterly Activities Report, but I believe that should be everything needed to satisfy the conditions to unlock the debt facility. As for the remaining shortfall, most likely they'll approach a bank for a loan, whether it's the AfDB or any bank in Angola that has made record profits, MNB should have plenty of choices to choose from.
MNB Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
