Taking a read; - cost of equipment was ~50% of total expense in original DFS and updated DFS “shows a significant reduction in cost of key capital items”.
- price of energy is up around 15% on the forecast figures used in original DFS.
- looking at non dilutive financing options.
- the 5 year fixed price RCP strategy was chosen to meet requirements of debt financing from Infradebt.
Despite the disaster that occurred, all looking very good and no wonder GD is loading up the truck at these prices.
Correct me if I have misunderstood but seems like somewhat of a balls up by management in going for the 5 year fixed price strategy which then ruled them out of receiving any RCPs under WEM rules because of the reserve capacity surplus. Obviously they did not forecast that there would be a surplus.
But they have now learnt from this error and if anything the project looks even stronger on paper based on what they are saying so would be a shock if the DFS doesn’t come in with even better numbers. Seems like a no brainer at this price which is much easier for me to say having only recently entered the register and not having purchased when the price was 50c+
FHE Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
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