100% Ownership of LCEP Paranoia.
Fellows, what's this obsession with 100% ownership. Too much accolade and zero analysis. "evangelical" approach by posters has been suggested. Not enough balance in the argument.
Now what does a thinking person do. Well, here is a scenario (extreme) for your consideration.
I see a beautiful pristine working engineering construction with a $2.6 billion loan. This project is big, big, big. It ticks all the boxes to be classified a "mega project"
I see an annual loan payment of $187,000,000.00 i.e. $2.6 billion over 30 years @ 6.0%
I see $187,000,000.00/($450/tonne) = 415,000 tonnes of urea produced.
I see 415,000 tonnes of urea being 415,000/1,000,000 = 41% of annual production
I see 41% of annual production taking 5 months.
So, the factory has to work at name plate capacity, transport and sell 415,000 tonnes of product, without any mishaps for five months before a cent will find its way into the kitty, Now this is a tall order for a startup plant.
If things go awry and creditors get nervous and pull the pin somebody is going to get valuable factory cheaply. No wonder there is no organization wanting a massive share placement in LCK. If difficulties occur, there will be a mad scramble for share placements (at what cost) to save the company, the creditors might become nervous, and will be in control, not the shareholders. LCK has three big areas where things can go wrong, supply of gas, factory operation, and transportation.
If you are comfortable with this, good for you.
With this large a loan I cant see a massive increase in share price. Would someone let me know what share price is being used to calculate the number of "baggers". J L.
Expand
(20min delay)