Some considerations on the topic of KP2 project funding and the likelihood of KP2 achieving the required funding on expected terms.
As is well known, KP2 has some very wealthy shareholders (some details of such are posted below).
It seems apparent that these wealthy shareholders could almost finance the required USD $ 2 billion in capital costs for the construction of the Kola project on their own, although, i don't think that is a likely outcome here.
However, I do think that it could be possible that these wealthy shareholders would/could offer to provide a guarantee on part or on all of the loan which would be issued by a separate third-party financier (if that is required to get the deal across the line, although i also do not think that will be required).
I find it difficult to believe that such wealthy shareholders/backers, who also hold such a large size of the KP2's equity (top 8 holders own about 70% of KP2), would sit back and let project construction funding become an issue for KP2 after the KP2 has come so far......to the point that KP2 is on the edge of starting construction.
IMO, project funding for KP2's Kola project will be secured, and will likely be secured as per the expected terms.
1) KP2's Wealthy Shareholders
We know that KP2 has some wealthy backers. With OIA and SQM we can actually explore the degree of that wealth. Together OIA and SQM own about 27.5% of KP2.
2) The Wealth of OIA and OmanOman is considered a relatively wealthy country due to its oil and gas reserves which have been a major contributor to its economic development. In 2023, Oman's GDP was approximately USD $108 billion dollars.
The Oman Investment Authority (OIA) is the Oman sovereign wealth fund. As of 2023, the OIA managed assets totalling approximately USD $49.9 billion dollars, an increase of about 12% from the previous year.
3) The Wealth of SQM
According to SQM's latest published annual report, SQM's net income for 2023 was USD $2 billion dollars.
Total revenue was about USD $ 7.5 billion dollars.
IMO, project funding for KP2's Kola project will be secured, and will likely be secured as per the expected terms.
All in my opinion, not financial advice.
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