They will be getting low for Andash so a cr is likely, but the amount is unknown because the project can easily handle a much larger debt than $50mill.
At spot prices they should have cash after tax around $90 mill per year, so even a $90 mill loan can be paid back in a little over 1 year. Even 100% debt can be repaid in under 2 years so no cr needed from that point of view although the banks rarely want to fund 100%.
They can then either wait 2-3 years after Andash commissions and have Andash cash flow pay the majority of cap costs for Jervois with the rest debt, or do another cr from a much higher sp once Andash is running and pay for Jervois with a split of equity/debt.
With Andash running the sp needs to rise to $5 to get to a PE of around 6 and a cashflow multiple of 4.8.
Thats combined earnings from Andash and Burnakura stage 3.
At $5 a cr for Jervois will not be nearly as dilutive if combining debt/equity especially if waiting say two years after Andash commissions to get back to debt free and maybe around $80mill cash in bank.
I don't see any need for a JV and if they don't rush into Jervois before Andash gets us up to atleast $5, we don't need to see too much dilution.
If Jervois is looking very strong then it too may be factored into our sp by then so instead of $5, we may be sitting at $7 for a PE of around 8.
By then who knows.
Way too early to worry about Jervois funding now.
- Forums
- ASX - By Stock
- KGL
- q and update
q and update, page-28
-
- There are more pages in this discussion • 26 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add KGL (ASX) to my watchlist
|
|||||
Last
9.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $61.57M |
Open | High | Low | Value | Volume |
9.3¢ | 9.5¢ | 9.3¢ | $4.369K | 46.76K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 977 | 9.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
9.6¢ | 5801 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2725 | 0.093 |
1 | 5450 | 0.092 |
1 | 11000 | 0.091 |
1 | 100000 | 0.090 |
1 | 100000 | 0.089 |
Price($) | Vol. | No. |
---|---|---|
0.096 | 5801 | 1 |
0.097 | 39191 | 1 |
0.098 | 185577 | 1 |
0.100 | 47902 | 2 |
0.105 | 2800 | 1 |
Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
Featured News
KGL (ASX) Chart |