My read of the independent expert's report is that while dilution is not ideal what is proposed appears to be the most viable option in the short term for the development of the project. Am surprised but pleased MCC HK is lining up again after Citic, however, pretty sure they will drive a harder bargain this time round for the EPC work.
Given they are already up the road and have almost completed Citic they are probably best placed to learn from past mistakes.
A +ve return on a development is still better than no return (and continued dilution) with no deal imo. NPV for the project does improve with the extra tonnage. Question is will the final structure only be designed to benefit the offtaker and CP/Mineralogy (through royalties)to the detriment of Australasian shareholders???.
$3.9b financing is certainly a very big ask for any single transaction while there is global turmoil in banking markets, let alone out of favour cost intensive magnetite projects - hence chinese offtaker finance will be essential for success.
Interested to hear others views and how folks will vote. Good luck to all.
ARH Price at posting:
13.5¢ Sentiment: None Disclosure: Held
