Hold or Buy, page-25

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Guido21

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25/01/19

13:49

Post #: 37225175
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Originally posted by El Jefe ↑

If A40 achieves ~$750p/t going forward then that will be no different to what was projected before the recent rearrangements. Of course your talking out of turn and don't understand this.

Let me help you. We had a 15% prepayment at $880 to pay prior to recent negotiations.
If you can get your calulcator out you will notice that 85% of 880 is $748 almost exactly what PLS are getting. Now its common knowledge A40 spodumene is better than PLS spodumene but it remains to be seen if this is shown in the pricing structure.

So regarding cashflow at those prices nothing should have changed, at least over the next 6-9 months until that loan was paid off which has been postponed to 2021 IIRC.

This doesn't mean a CR is totally out of the question. If prices achieved drop to the $6XXs ($680 floor for A40) which other recent spod producers are said to be getting (dont expect any guidance there) or if there are further issues onsite then there is a case that more money will be required but with the $40M debt facility buffer, half likely allocated to fines/loan, other half I expect is still undrawn (should find out soon), im banking on A40 being able to get through without further dilution. YMMV

Speaking of loans, how does $200m get paid off when a company sells 20kt in a quarter for a price in the $600/700s, Just incase A40 might need to borrow $200m for whatever reason, you have more experience here than me, perhaps?

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Which company has a 200mill loan and selling in the 600/700s?
Could you please clarify with proof

A40 Price at posting: 20.0¢ Sentiment: Sell Disclosure: Held
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Hold or Buy, page-25

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