dt7, when you look at the figures produced in the revised DFS ( AUS $ 853 mill being $748 mill total stage one capex and $105 mill contingencies and EPC fees, November 2017) and compare them to the mandate parameters (US $600 mill AUS $850 mill) you'd be forgiven for thinking we're in for a 100% debt finance package. Especially if you factor in a nice assistance package from NAIF of say $50 to $95 mill.
it seems not if the mandate terms as stated in the recent quarterly update is to be relied on. Attached below, specifically referes to commencing parallel equity partner nrgotiations independent of KfW.
There are finance peeps on this forum who say the capex will be more than that stated in the DFS and an obvious area for revision is the modular construction country of origin. The DFS were based on largely asian sourced construction while it looks like it may now be Europe. Against that we know that a significant stage in the Titanium pigment feedstock process has now been eliminated with significant cost savings. (Ann 2/18)
In addition we have the unknown area of the BOOT contracts relating to Acid Regeneration plant $217 mill, Oxygen plant $ 33 mill, Chlor-Alkali plant $95 mill and Titanium pigment plant $222 mill. Only the pigment plant has been mentioned since the revised DFS 15 months ago and the language used leaves open that plant coming back into TIVAN refinery costings but thats not clear yet.
its a little concerning that after so much apparent progress and TNG being so close with the mandate now 6 weeks on and TNG advancing equity contribution discusions that our SP has slumped well boyond its pre Vinsom announcement support. As has been said that announcement smashed the thick end of $20 mill off the MC and diluted the Share pool by another 10%. Again it is said that leverage into India is a good thing and it is as one of the potentially dynamic emerging markets, the question is how does Vimson fugure in that chain.
All food for thought i guess.
TNG Price at posting:
9.5¢ Sentiment: Hold Disclosure: Held
