News: CXO Primero Group Increases Forecast FY19 Revenue To Approximately $150M, page-6

hahaha

the tea leaves are now telling me that we could be very close to a project finance announcement

it seems a number of our peers (MIN, PLS, AJM) have some form of BOO contract in place

I don’t know much about BOO contracts, but from some quick reading it seems to me that an entity provides some upfront capital in order to build operate and own whatever it is they are financing.

looking at Primeros ann today: “...conditional award of Primeros first build own operate contract for the crushing and screening circuit, the engineering procurement and construction and the complete operations and maintenance for the processing facility.”

how is everyone interpereting this? To me it sounds like Primero could be financing the entire plant!

according to our DFS the upfront capital cost for the DMS operation is about $47 million. Looking at Primeros half yearly accounts they have $26mil cash, $35mil in funding facilities and are expecting revenue of approx $150mil. So looks like they could cover the plant cost pretty easy.

Reading up on BOO it seems governments sometimes get involved to provide the builder with concessions in order to get the project up and running. I wonder if the NT gov could be stepping up to the plate?

I wonder if by extending the contractor status to BOO and awarding contracts with a value of $100mil, this could be the return for Primero for the upfront capital for the processing facility?

100% speculation and guesswork. I would love to hear other’s thoughts and how they are interpreting this.

but I am quietly excited. I think some big news may be around the corner

All IMO

GLTAH

bt the way, I noticed today that the underwriter of the strategic investment with lithium royalty Corp (James Brown) was Jett Capital Advisors. Jett were also advisors for the US$110mil debt facility with Altura (also James Brown). I wonder if Jett were/are the ones behind our non-binding term sheets?