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16/08/23
09:15
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Originally posted by ftroop:
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Hi Justa I just watched the STX/TPD promotional video and I picked up some interesting points from SN: 1) Santos only has a first right of refusal for the 13 TJ/day of "as available" gas. That means we are free to sell that gas to anyone at spot prices. The new, higher annual sales value of $82M disclosed by STX has an implied sales price of about $6 per GJ for the whole 33 TJ/day. But the extra 13 TJ/day available could be sold for $8 to $10 /GJ according to SN. That means additional income of about $15M per year is possible. So the $82M could be $97M a year. 2) SN acknowledged that they can't drawdown on the $80M loan facility and that it will take ages before Macquarie will allow that, with some of those boringly tedious conditions precedent such as requiring environmental approval first to allow production. There's no surprise there, because Strike is still not able to drawdown on their $40M Walyering facility because they are still not in production. 3) The gas acceleration concept cannot work unless they get access to unrestricted cashflow and that is why they are so desperate to buy TPD. 4) The modules they want to build overseas will only take a year to build. My intreptation is that Strike are hamstrung and cannot possibly do all that they have said, unless they get our cashflow. Their offer is strikingly inadequate.
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great summary @ftroop now, if you wanted to takeover STX (Ellison or Gina that is) what could you do to help lower the STX share price over next 12 months??? Restrict their access to FCF!! SN just told us exactly that. if we are all thinking that, I can guarantee you they are also!! some big volume last few days, I just wonder who is buying all those shares… ;-)