Not Codelco funding the deal, Rothschild will be the funder....

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boratkingdom

86 Posts.

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03/10/23

09:19

Post #: 70140897
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Originally posted by FreeflyerNZ: ↑

What do you class as cashed up?

Codelco is struggling. Debt has climbed to over 19b and said to be over 30 billion in debt by 2025 some are predicting. Copper output is the lowest it has been. Just this year alone it has taken out another 500m US loan and issued around 1 million dollars in bonds.

Behind Codelco’s year to forget are a series of setbacks at its aging mines, plus delays and cost overruns at projects designed to address deteriorating ore quality. Amid the struggles, key personnel have departed, including two CEOs in a year.

Its debt has now jumped to more than five times earnings before items, making it one of the most leveraged major copper producers. That’s not helped by Codelco still having to give 10% of its revenue to the state, draining it of resources and pushing it to raise more and more debt.

“If production promises and costs of these projects are not completed, debt levels could reach such high levels that they could drag the company into insolvency, jeopardizing its financial viability,” Cesco wrote earlier this month.

Enami also has no money.

Codelco will continue to dangle the carrot in front of LPI shareholders.

But dont worry construction only 3 months away

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Not Codelco funding the deal, Rothschild will be the funder. Read Chilean articles.

I am now great full I have sold a large percentage of GLN and invested it in LPI. For said reasons I believe GLN will continue to trend much lower, whereas LPI is the most advanced real lithium brine project in South America.

Interesting few months ahead

LPI Price at posting: 36.0¢ Sentiment: Buy Disclosure: Held
14 Upvote

5 Great analysis

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Not Codelco funding the deal, Rothschild will be the funder....

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