Hopefully they can come out with a positive announcement that will lift the price before raising capital. Raising at approx 4c will be very dilutive. They need to announce some binding offtake agreements that will de-risk the project. This project has outstanding economics if they can just get some buyers!!! They mention in their announcement that they are in advanced negotiations with end users...only approx \$90m capex for stage 1. This is not very high so hopefully they can secure a diversified set of financing options i.e. offtake customers to chip in for project financing, combined with debt and equity financing. Stage 2 is expected to be financed from free cash flow - but need customers first!
BKT Price at posting:
4.4¢ Sentiment: Hold Disclosure: Held
