The cash flow increases the share price and allows the company to raise capital at a much higher share price. An end user can pay the bulk of the cost of the plant for a guaranteed offtake - just like the Japanese did with the coal mines in Qld in the 1970's and ongoing today. This is a good strategy. The company will be in a strong financial position and can dictate the terms of the deal when negotiating the bigger project. It could be scaled up incrementally to reduce capex. That will be paid out of pre-tax income - not borrowings. There are many ways of skinning a cat. They are playing the hand they have been dealt and their strategy is good. Let's wait for the numbers.
E25 Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
