Which company has a 200mill loan and selling in the 600/700s?...

First 25 Last

Share
Profile

Follow
Guido21

1,054 Posts.

228

25/01/19

13:49

Post #: 37225175
Share

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?

Expand

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
2 Upvote

0 Great analysis

Reply

Top Stories

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

HotCopper Highlights: Your most watched stocks for Week 48, 2024

RSG

Resolute shares bounce back as second payment made to Mali government to secure workers' release

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

ADD

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor

There are more pages in this discussion • 55 more messages in this thread...

First 25 Last

Add A40 (ASX) to my watchlist

Which company has a 200mill loan and selling in the 600/700s?...

Top Stories

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

HotCopper Highlights: Your most watched stocks for Week 48, 2024

Resolute shares bounce back as second payment made to Mali government to secure workers' release

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor