Putting aside how you price that, selling 30% of project also means BKT only needs 70% of CAPEX, USD158m. if you can maintain USD110m from the banks, BKT short of CAPEX share is USD48m or ~ AUD70m.
AUD70m for 30% of project implies a $233m Market Cap or 18c share price. Importantly it's valuing it a 10% of NPV.....I think once the debt is confirmed, it's game on for SP.
that's the ultimate outcome as you don't need POSCO and as no ECM dilution, value per share ($ of NPV per share) is superior than issuing 50% equity funding of entire project.
BKT Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
