Ann: TNG Mandates KfW Bank for Debt Finance for Mount Peake, page-101

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Propunter2

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14/12/18

10:57

Post #: 36858163
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Originally posted by abishai ↑

Originally posted by Propunter2
Through SMS & kfw, TNG have majorly de-risked :
• The EPCM component - Detailed design through to commissioning of both the mine & refinery. This includes sourcing & delivery of long lead items as SMS manufacture much of the equipment.
SMS have done this before. They know how to deliver. They are guaranteeing the new process flow sheet will deliver so the production numbers are a known quantity.

• The Finance component kfw - finance will happen - the announcement released will have been thoroughly vetted. This is what kfw were happy for TNG to put out to the market.

Will they fast track this project?

I'd suggest they all recognize that the extremely high Vanadium prices - 10 times what they were when the DFS was released, will not be a long term thing. If they can get this plant underway by mid 2019, commissioned by 2020, the V2O5 bull market will likely still be running as Bushveld, Largo & Atlantic will be about the same time frame.
If it's mid to late 2020, I wouldn't be as confident as there are lots of Vanadium players vying to build capacity.
That one year at these high prices will pay for their plant.
if PB is targeting financial close by Q'1 2020,there won't be much plant building in 2019 as the senior debt will not be drawable until all conditions precedent are met,which will include raising of the remainder of the debt and equity components.They certainly could raise the equity component early,to start building,but that would likely mean heavier dilution,unless raised at project level.I see production at 2022.....

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Paul Vollant stated they are targeting H2 2019 for finance.
I'm of the belief that they will endeavour to bring this forward to capitalize on the high Vanadium price.

TNG Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
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Ann: TNG Mandates KfW Bank for Debt Finance for Mount Peake, page-101

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