Imo the board will want a better strategy (i.e. less risk) than relying on future income in order to sign off a FID to commence the 10ktpa expansion. Imo they will want a more "certain" source of confirmed funding i.e. "in the bank" so to speak. This will allow construction to commence with very low risk of something going t!ts up (or being delayed) wrt funding along the way. I know, we are all quite sure that the money will come flowing in from the 2ktpa sales, but the board has specific responsibilities in this regard that leads me to think that a "seperate" funding solution will need to be in place before they allow the trigger to be pulled. I'm expecting a combo of equity and prepayment; the larger the prepayment the better... I suspect the customer will negotiate a discounted price for the prepayment, and cover their risk (and time-cost-of-money) by securing this discount and equity as cheap as they can (which I hope is 40c or higher). ...or perhaps the funding will come from 2 seperate parties..? A prepayment of 50% of an initial 10,000-tonne supply (say 50% of $20,000 per tonne = USD$100M), plus issue of 300M shares at 40c (another AUD$120M) should suffice to build the expansion and fund initial production.....? That would be a good outcome imo. We'll see.
Just imo dyor!
AGY Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
