General Comments & Banter, page-11980

Hi Rt. It’s anyones guess what the actual structure of the loan will take BUT the modular approach seems to take care of the risk factor to a large degree as the lender will only be exposed to whatever the initial modules size of production will take.

In other words it’s safety first with the pilot plant OT being the initial OT with as u say product for payment. U can’t get too much safer than that for the OTer. 

Then u step up to say 3 to 5000 tons modular and take on a 30 to 50% project risk and if this works out and the OTer is really starting to ramp up battery production then they go the full bottle and add whatever size module/s they require to get to this number.

The interesting thing is tho is that the longer we go to an OT and what one would think would be a connecting mou the closer we get to a full bottle size deal.

But the main reason for this follow up post is that with Japanese rates as low as they r to get a decent return and get thebanks into positive earnings territory with rates at or near the negative they r happy to lend for OS projects that help the Japanese economy as well as pulling in revenue via the actual financing deal. 

Imho we may just get almost a shock at what these terms will be for total payback and I mean to the low side. So again this would result in any resultant deal the Japanese will want it to be as close to bullet proof as they can get which means the OTer being TOTALLY happy with the product they will be getting from AGY.
yada yada yada.

All this imo and not intended as advice. Dyor on the JBIC  to affirm the above generalisations. 

Gr.