A quick read of the Qtrly caught my eye.
View attachment 2134858
so not only time frame of development of PIOP, but the cost to develop PIOP (and thus achieve any return for FMS), will be delayed, plus cost of development looks like it will now exceed the original estimate we were told.
I cannot find the info on presentations which illustrated how the cost overruns of development of PIOP would be allocated to BBIG and FMS.
I cannot recall just what amount of development costs FMS would be "free-carried" to??
was it an absolute $ figure?
or was it a % of costs?
I think a $ figure.
I found this:
View attachment 2134879
So we were told that the jewel of the deal was that FMS was free-carried to production, and thus FMS would get the rewards from seeing PIOP enter production.
But FMS is only free-carried to a limit.
Once that limit is reached, FMS needs to fund 40% of the cost overruns.
In the evnt that FMS cannot source the funding to cover those cost overruns, it must relinquish a % of its interest in PIOP Mine Co to the other parties ie BBIG and Chinese.
So we are already seeing a glimpse or hint, that the development of PIOP may exceed the original cost estimates, and a hint that FMS' interest could be under threat.
Call me cynical, but we are continuing to see minority interests in FMS being diluted, now there is just a small hint of the potential for the FMS interest in PIOP Mine Co could be under threat in the future.
It seems that FMS needs to clarify what the implications of that comment above means for FMS and its shareholders.
Happy to be corrected.
