RE: My point is this.22 Feb 2019 12:02
GFD lets talk turkey as I have taken sometime to consider the financial implications and scenario`s knocking about.Lets say I know a little about International banking and can sort out the pro`s and con`s with the limited information available.
Chinese Company versus Chinese Company.Forget that one as I cannot remember any instance of that happening.
Main issue for any financier is are Government behind Lithium mining.Thumbs up there.
One, two or several Plants? Depends, how anxious vendors are and supply and demand always prevalent.Take off agreement implies we should honour agreement to SC.For them to have agreed to buy 80% at market price over term should be respected as very substantial skin in the game.Two thinks queer the pitch although both beneficial.French firms Peugeot with the "Ami One" car and Renault are pressing ahead to strong EV production as early as 2022.The strength of influence in Mali of the French could well be high,i don`t know.The second recent variable is the mine expansion from the additional land.We estimate mine life of 16 years but that may be inaccurate and the new land could push that duration well into the twenties.
Supply and demand,and our current plant output may well mean we rapidly hit high maximum output,thus a second plant would be essential.Against that SC the Chinese may be well happy to use mines they have an interest in located closer to home and take supplies from there prior to sourcing at a greater distance from.Highly unlikely but cannot be discarded from the thought.
To conclude the above if you are looking for a Company duel imo it will Chinese vs. Eupore but my money is on China their aggression beats our on lack of foresight with ease.
Now on to the cost, terms and ancilliary financing, intimidate details are not available and leave us quessing.Needless to say if an outsider was to crash the party now they would have to take a lot to the party and considerable funds,but an London listing and liguidity means it could easily occur.We could play from a position of strength due to the Chinese and would have a strong hand regarding release of funds timing, interest rate and repayment schedule.
However, here is the but would SC just rollover and walk away and would we want that.Anyone getting involved will want their pound of flesh.
This is where I agree whole heartedly with RayG, the best thing for us is no dilution of our share holding,and the only way I can see that happening is with an Isolated Plant built in situ on our mine.I will qualify this with the remark that without full insider disclosure no reputable financier could proffer an opinion.
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