Thanks again Blue Fox, and for bearing with me on this...Looking...

Thanks again Blue Fox, and for bearing with me on this...

Looking further at the numbers, SO4 has raised c$200m equity and $200m debt since June '17. I think the switch to Lake Way over Wells happened several months after that, and some cash is obviously being spent on corporate expenses and evaluating the other lakes currently, but ignoring those dynamics in order to keep things basic, and conservative, c$400m will have been spent on Lake Way to get to first production (assuming no problems from here...).

$200m equity out of $400m total is 50%, so I'm not sure where you get your 85% equity ratio from?

Moving to KLL, they've now raised $182m of equity and have a debt package of $195m.

So a) their equity:debt ratio is basically the same as SO4's
and b) they'll have spent a very similar amount to get to first production, but their initial capacity is c40% of Lake Way's.

Yes KLL plan to increase capacity, but that's going to cost more money, and whilst they may finance it from the cash flows of phase 1, it's not free. If all goes to plan for SO4 (and I completely accept that it may not), by the time KLL's phase 2 is up and running SO4 could have repaid c50% of its debt.

Slimbo