And the first one that has signed a - at this stage non definitive - heads of agreement is a US$10B Company that is part of the second biggest Steel Company in Japan. How much due diligence do you think they carried out to get to this stage? Would us punters know more about viablity with our limited information than them? Why would they pull out now? ….although of course there is always that risk in any deal (force majeure event especially).
My understanding is that they first met MGT over 4 years ago - there just wasnt the green steel urgency or impressive management team in place then.
Tim has openly said that MGT targeted the Japanese steel makers because they are more intent on adopting Green Steel technology and also because he has had prior dealings with some of these companies, This no doubt narrowed our playing field. Anyone that has dealt with the Japanese know how thorough and painstaking they can be, but once you are ‘in’ then they are supportive and consistent partners - with huge resources.
Any banker or business person worth their salt knows how hard it is to land the first deal. They would also know that once one or two sign then FOMO kicks in - and belief. We are probably little way from that I admit - but who knows…?
The investment decision for me is how much weight should one put on the agreement, the parties involved and the likelihood that this project will advance. If you rate this as low then dont invest - quite simple really.
We all want this to happen faster - I suspect none more than the MGT team so as they don’t have to cop some of the rubbish that gets thrown their way.
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