Where’s $1b debt coming from? Including corporate cost and...

Where’s $1b debt coming from?
Including corporate cost and working capital to generate positive cashflow, net debt would be $394m for LTR. There’s an extra funding available, $366m can be utilised if required, then total debt would be $760m.



ALB announced to cut their capex spending from US$2.1b to US$1.6-1.8b, as well as lowering additional $95m cost. As they have debt of US$3.6b, so ~80% lithium price drop would force them to cut costs and recoup cash from selling minor stake in LTR. I think that’s the part of reasons of withdrawing the takeover bid as well.

It’s interesting to see what Gina will move next. She obviously paid a premium for 19.9% at average price of around $2.85 (mainly purchased on market around $3, plus $76m at $1.80 raise). She has $20b cash, still generating multiple billion dollars cash from Roy Hill, so cash is not an issue for her, just what price she is willing to pay.
She is paying top dollar for AZS as well.

All imo.