It was stated by a few that this non dilutionary approach was...

First 516 Last

Share
Profile

Follow
Merchant2000

19,279 Posts.

844

24/04/24

07:08

Post #: 73487054
Share

Originally posted by chuk: ↑

This stock is not just about risks. It still holds the same projects.

The phosphate project financing is in fact well advanced.
The IDC loan for US$14mill was approved, with standard conditions including securing the remaining funding of US$11mill. The cr has raised A$6mill of that so far. The company is also talking to Angolan lenders. Importantly those lenders must reach a minimum quota of loans to the agricultural sector;
"The first such measure was prescribed by the Central Bank of Angola (BNA)under Aviso No.10 ‘Granting Credit to the Real Sector of Economy’, whichrequires financial institutions to grant a minimum quota of credit per year(based on the institution’s net assets) to borrowers in the sector, whichexplicitly includes fertilizer producers, with the cost of credit capped at 7.5%for loans and 10% for working capital facilities."

Carrinho has signed a binding MOU to purchase most of stage one production. Field trials are yielding very good results.
The IDC loan is likely to be followed by more offtakes to at least one South African customer.

Long lead time, major plant components are paid for, fabricated and delivered to site.

The following is another positive development protecting Minbos from competition from imported products and there are no other local producers which effectively gives Minbos a moat;
"Presidential Decree no. 213/23 came into effect 1 January 2024 andprioritises local production over imports for certain goods, includingfertilizers. Authorisation for imported fertilizers is now required, which willonly be granted when the importer demonstrates it has exhaustedpurchasing opportunities with registered national producers.• This means phosphate fertilizer customers will be required to purchasefrom Minbos, as it is the only producer of phosphate fertilizers in Angola(currently 100% of such fertilizers are imported).

I think there is too much negativity priced in and not enough of the positives.

A few don't want to consider the world class green ammonia project until the phosphate is fully financed and under construction. That doesn't mean the GA has no value but the market is not currently giving it any value.
The stock is trading at too big a discount to the phosphate and the GA is effectively priced at zero. That can change rapidly with the right news flow.

Expand

It was stated by a few that this non dilutionary approach was never going to work out well

Seeking funding for 100% of all capital works and more was never going to advantage shareholders at this end of ASX

It was a huge gamble that has failed miserably

A CR for all capital works should have been executed in 2023 and although shareholders would have been heavily diluted - they would be miles in front of the current debacle

@chuk stop offering false hopes - SP has not factored in missing deadlines or not securing full funding

2c or lower is possible if it fails at this crucial point in time - this fall os not from a bear market on small caps

Unfortunately now imo is to hit market for as much capital as they can and not be reliant on others for the next 12 months

IDC pre conditions only favour them

imo seek advice outside of HC

Last edited by Merchant2000: 24/04/24

MNB Price at posting: 5.9¢ Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply