The Hancock/FMG deal could then be hypothetically :-
- Gina pays down a convertible note of $70M in exchange for 50% of the yanks secured debt
- FMG pays down a convertible note of $70M in exchange for 50% of the yanks secured debt
- FMG & HPPL price the con note at a 12c share issuance
- AGO debt gets wiped and no CR or shares are issued until share price hits 12c and when they are the shares are issued at 12c evenly to HPPL & FMG which then increase their stakes by 7% each
- the port berths are leased to FMG/HPPL on their port sides for $10Mpa (free cashflow), Govt waiver
- HPPL & FMG agree to regular rail access by AGO from AGO mines to port at an agreed rent or royalty say $10Mpa
- Govt cancells its royalty and port fees waivers and boosts WA revenues thereby
- AGO then can boost Li & IO high grade production
- AGO uses its tax losses to remain cashflow positive for the next 5 years
- AGO remains listed and unlocks the unused port berths
In this scenario -
- HPPL FMG get port expansion capacity for free & larger stakes in AGO
- AGO debt is wiped by higher priced con note converted to shares equally at the strike price
- AGO remains a listed profitably entity permanently with rail to port slashing costs sharply
- a new BOD is appointed controlled by both Hancock and FMG
- Govt revenues increase substantially
- contractors remain employed and benefit from the shareholdings
- AGO multibags as its true value is finally unlocked
win win win
just a hypothetical scenario.... it could work but the market gives this 0% chance right now.
If you think they should consider this scenario give this a thumbs up!
