This is likely to be a short thread, but a stock (located in the Murchison, so almost a neighbor) I hold a few shares in was today able to basically fully fund itself for development (similar to SPR as it already has a plant, well... most of a plant, 1/5 the throughput, but still, I think a very good starting point for a comparison). Let me be clear, I am not cross promoting here and I won't be holding once it gets into production), just wanting to basically show the forward sales/options price that this small developer was able to lock in (not saying SPR will want to do this, but... dang, the prices are impressive). The company was able to raise 60% of it's market cap at a smallish discount, with the other 60% (yep, they basically secured 120% of their market cap to fund plant upgrades and pre-production etc). This is impressive in the sense that if this 50-70k p.a soonish to be producer, can secure this sort of funding (and again, to be clear, this are some negatives for how they got the funding, but... I think overall, they did well).
The prices and dates are potentially in line with when the Dalgaranga plant will fire up. Imagine the sort of funding packages SPR could put out for, or... if as I hope what happens, SL and the team 100% fund it from shareholders, which would mean zero debt (though some sort of facility for overruns might be prudent) which quite a few fund managers now preferring this over debt and hedging. The best outcome for SPR is to have brokers/local & international throwing themselves at SPR to be the lead managers for any final raising (likely early/mid next year is my guess) the better for competitive tension, higher raising price and lower fees.
Not at all saying funding is going to be an issue for SPR, but more importantly, whilst some might want the plant turned on right now, the ounces, when they do come out of the plant, might be fetching much higher prices than today and SPR will be one of the lowest cost producers...
(20min delay)