Announced today that VW are in advanced stages of an IPO for their Porsche brand. Valued at 10’s billion of Euros. This is significant as historically VW has (because people of its shareholder structure) had to rely on free cash flow and borrowing to finance its activities, and have been restricted in their new activities. This if it goes ahead would finance an accelerated move to EV. Plenty of articles online about it.
If you are one of the people (like me) who see a big picture jigsaw taking place with the Skoda plant transitioning to EV, and VW having talked of vertical integration into battery production and raw material supplies, then this is significant. I am of the view that Geomet will be looking to finance the balance of its capex through some form of paid in advance offtake, or a direct investment linked to a longer term offtake agreement.
Timelines are difficult to predict, and it appears to be the regional EIA/community issues that remain to be fully resolved, but there is huge pressure from a variety of sources to get to the finish line asap.
Ukraine is a deeply troubling political distraction at the moment, but I cannot see how it impacts on this project.
All imho.
EMH Price at posting:
$1.16 Sentiment: Buy Disclosure: Held
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