Yep, I can see how when painted in this light it can seem more...

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qball

5,054 Posts.

2465

16/06/20

22:45

Post #: 45262584
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Originally posted by Obe wan ↑

man goes to bank and asks for $500m to build a factory in the middle of nowhere

Bank manager asks;( looking up over glasses after reading half way through the business plain) ....hmm so, you have customers willing to lock in purchasing contracts, which in turn will work to pay back this $500m+%.. I do see a couple of potential issues; although the factory is a fine specimen.

Man reples - (A) Nah mate; She’ll be right; they’ll come

Or

Man Replies - (B) yes mate, we’ve signed an initial off take for 75k tonne per year ; there is significant interest in the project ; quality supply is going to be an issue in this sector going forward. We have a number of interest parties and with that initial OT we have sales to pay you back and we can deal with the other potential customers moving forward on our terms. Customers are willing to invest and I've shown you proof of that.

I think some posters find (B) a bit more logical, hence the divide

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Yep, I can see how when painted in this light it can seem more logical to have OT’s first.

I suppose it boils down to this line within your story...

“ ....hmm so, you have customers willing to lock in purchasing contracts, which in turn will work to pay back this $500m+%...”

If confidence for this was adequately addressed then yep they may well be happy to finance first. Let’s wait and see.

AVZ Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
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