I'd originally intended to frame it as a question because there is a lot of ambiguity around what the loan application is for. I read your reply earlier this morning and was glad you did but I had to get some sleep before replying.
They stated again at the time of receiving the revised 100m grant. That the loan is for the next facility that will be minimum 30ktpa - OK. I missed the timing. That makes me happier.
There is also nothing about a short timeline to use all the money, if that was the case - No it wasn't. They were discussing when the DOE LPO has to finalise all outstanding loan application by. As I've said before, once they're finalised, a change in administration can't cancel them and must distribute the money. They don't handout the money in a lump sum. There are milestones written into the loans contract which must be reached before each partial payment is made.
It's not unlike Australia. Once the PM goes to see the GG to call an election the Govt goes into caretaker mode and can't issue any new funding. I'm not sure but Nov 2024 might be the expiry date in the IRA for this round of funding to be finalised anyway. The manufacturing tax credits don't have an expiry date which is interesting.
I’m not sure they would have have stated “customer revenue” as a source of matching the grant. For the record they have stated 2025 is when they want to start to generate some real returns. - “customer revenue” can only match a tiny portion. We still don't have a definitive feasibility study so don't know the cost. As they stated, 2025 is when they want to start to generate some real returns. The real returns will be from the 20kt Riverside plant the grant money will help build. They can't put the cart before the house. They also stated they want to have a run rate of 3kt by the end of 2024 to meet Kore's obligation. The run rate is annual.
Battery manufactures need a constant supply to match their own production run rate and obligations. You just can't mix graphite from various sources without doing rigours safety testing. Even changing volumes from each source requires rigours testing to make sure the chemical balance remains inside the safety limits. This goes for the cathode as well and if you change either side, they have to be tested together.
This year has felt like a perpetual holding pattern - that has to be the understatement of the year. 2023 has been a nightmare
NVX Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
