RE: two sides to every coin26 Oct 2020 18:05
Senior debt at $325m, I very much doubt that after that significant slice anyone else is going to have a problem financing this..... It is a question of the mix.
Brazilian Banks delayed due to Covid, now have a mandate to get more involved to recover from Covid, they will have taken steer from senior debt. Bigger senior debt more confidence in Brazil banks.
Teck/Glencore/Orion are all possible offtakes before we even look outside the company players.
Everyone knows Nickel is going places.....stupid to think Teck/Glencore/Orion not eager to take a bigger slice in HZM given finding your own mine and spending 10 years to get it ready is what you have to look forward to if you don't take a bigger slice of a ready made cake, oven ready.....Again there will be others looking action.
It is not a question of getting finance it is a question of the slices and what they represent and value. Nickel back up here is no bad thing for the negotiations.
If this project is not financiable NOTHING IS!
Vermelho is independent of financing Araguaia, however recent Telsa talk , tying up supply as an OEM, China getting closer to the Indonesians with poor ESG..... Vermelho inbound interest might be better to monetise before finance on Araguaia if it has picked up pace, making negotiations not relevant as it changes the whole bargaining picture and value of HZM beyond Araguaia.
So delays may in fact be in our favour as the only reasons I can see for delay are positives, it is just so unlikely that this project in this climate and price of Nickel can't get away finance!