RE: Financial safety net7 May 2022 13:27
From Dip666's notes on the 10min interview Shaun did after the last results:
* Update on financing options to develop Havieron?
- Again, part of what we want to do and it kind of dovetails into post PFS and around this 5% option, we want to be fully funded for the project
- It’s great that we get to leverage all this existing infrastructure and that manages down the CAPEX spend for a project of this scale, in reality it’s a very modest amount of CAPEX but it still needs to be funded
- Spoken with a number of banks, fair to say we have a group of preferred banks that we’re talking to now but we had comfortably over half a dozen main street banks we’d engaged with
- This asset has some hugely strong characteristics and qualities and it’s a nice asset to bank when you’ve got….. is it 1,2,3 or is it 4 decades of cash flow coming out of an asset and growth potential too, it lends itself to funding
- It’s a busy time for us, a busy process, but we’d like to get that announced and when we do I think we can be fully funded and again that’s a huge milestone towards the process
- And from there the timeframe to first cash flow or first production is relatively short.
I can't see anywhere in there that would even remotely suggest that things have gotten any more difficult from a funding perspective over the past few months - in fact if the quality of Havieron has been demonstrated to the banks then I think they would be even more likely to want to invest in an operation like Havieron rather than some of the other dodgy places they could like overheated properties with higher likelihood of defaults - all IMO of course.
Agreed that Shaun always has the equity option and there would be plenty of funds out there that would snap them up. He could always sell a portion of our 25% to a royalty streamer - loads of options available but I think asset & equity dilution are at the bottom of his wish list for now.
ATB - Paddy
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