RE: Wasa10 Dec 2021 16:20
Look at the response to news in BKT as project progresses they get bumped up. We are undervalued for current position and due to K leaving and creating downward pressure, so any news of progression should easily see some extra valeu added in SP.
WE coudl get any of these thigns and ALL by end of Q1.
CSIRO complete battery sign off
FEED pt 2, leading to EPC contract, leading to build deal (Xinhai are equipment and mine build providers as well as testers)
As coudl be seen in BKT the mine builder there lead to request of offtake, Xinhai may have asked for offtakes too.
Once you give offtake to the main mine equipment provider (because they are going to cut the best deal for you to get money towards Capex) then you can speak to the already a00% over subscribed MOUs you have. BBN from twitter highlighted htis line from the 'Half Year' report - with our offtake discussions in the near term through optimised Definitive Feasibility Study ('DFS').
- The wording suggests the same outcome as BKT, when it came to actually signing offtakes after EISA and ML, the offtakers requested more offtake than the original DFS accouted for (don't forget the DFS' were designed in less ffavourable demand conditions and were therefore not as ambitious as demand would require now and next 5 years+. That will mean ACP would be looking to utilise more of the 25% of proven resource and add more lines to the project either early or staged beyond the one expansion already planned....this will have huge impact on the NPV, to our benefit.
Other things the DFS will need is the EPC figures (inflation willl have an impact) and the exact mine equipment requirted post testing etc.....because you need all this in place as the final document to negotiate finance with. But equally you have build now, pay later perhaps, you have offtakes, prepay perhaps, all in line before finance and derisking size of finance and project.
Orrrrr coulld be lined up for a sale as soem are suggesting due to the silence. Most alrge holders and those with previous contact don't believe that MB is looking to do that until build and production for maximum return for him and those that invested with him. In sayign that I would take min 15p, but prefer 20p right now, but unlikely. Thing is low ball offers come for projects were they will struggle to raise money etc. but the economics here are very good as far as mining goes and ACP are not under the cosh to get this away. MB has stated quite a few times finance could be done any time but at a cost, so getting all the DFS update done and offtakes and build agreed to improve the terms. so in best interests for MB to get it financed and built before sale.
DFS optimisation just putting figures in should not take long so it must have some more detailed input and creatign a new mine plan/pit redesigns on new ore etc are not simple tasks and require some time to complete (AUS has been on lockdown where they do the DFS work) so we wait.
This is all to come
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