RE: Presentation....31 Jul 2023 15:09
Well worth watching it all, for those that don't have time the most import parts for me regarding realising Amapa valuation:
TLDW;
"traditionally what most people would do is they go from PFS go out to Market, raise the capital for DFS and certainly you know if our market cap was much more reflective of our asset value, that would be something we would have considered, but given where the market capitalization is the dilution to our shareholders by raising money for a DFS would have been quite punitive you know. I'm I'm a substantial with about one percent of the company so like other shareholders I don't want that dilution and look to mitigate that as much as possible.
So then we have three ways to look at develop this, our primary primary choice is to get a strategic partner / joint venture partner at the asset level in Brazil who would provide the equity in Brazil and take an equity stake in the asset in Brazil and and therefore provide enough for the DFS. That Equity partner could be of course a strategic investor from abroad which might you know have some engineer EPCM (Engineering, Procurement and Construction Management)funding associated with or have the first right of refusal of the EPCM funding so that is the engineer could construct and manage of the ventral project. so we have a data room that is open and we have several parties looking at that data. it does take time because they're going through the full PFS document and it's a financial model you know the actual PFS document is probably about about 600 pages long, but the backup engineering work is you know reams and reams of data, gigabytes of information that needs to be gone through so that is one option.
The other option is if there was a buyer out there that offered us a sensible amount associated with this asset
we would definitely consider it and could look to vend out in its entirety. The proceeds of which could be reinvested or returned to shareholders.
And the third one is would be effectively taking this asset and splitting it out into a market that would appreciate this asset for its value. That to us would certainly be the Australian stock exchange and something that we are actively looking at."
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