Most defintely @sura7667That observation on OTA is very...

Most defintely @sura7667

That observation on OTA is very important. I cut & pasted below a summary of the OTAs from the Prospectus as a reminder of the term/size/price of these OTAs.

These OTAs are critical. Vulcan plans to fund ~65% of the Phase One Capex (EUR1,496M) via debt financing (~EUR972M) and the balance through equity funding (including at the project level). Banks have loan covenants such as Debt/EBITDA (probably targetting below 3x which at DFS level its ~1.65x so that's safe). That's made possible in large part by the fixed price OTA with Stellantis whereby 50% of ~24.7Ktpa is sold at US$21K/t fixed price. That's guaranteed revenue of ~EUR240M and ~EUR190M of EBITDA which on its own covers ~60% of the EBITDA needed to cover a 3X multiple.

It's also worth noting that


so ... hard not to feel VUL will get the required Debt financing to move forward. Nonetheless its a lot of debt for a nascent, unproven company.

OTA SUMMARY