George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
John2015
What is the contracted sales volume of Poly4 in year 1 of production?
Why hasn’t the company revealed the minimum sales volume in each of the torp in year 1?
Does the projected cash flow stand up to scrutiny by the lenders?
Avocet123
What is the contracted sales volume of Poly4 in year 1 production?
The company has never revealed the minimum sales volume in any of the torp RNS. Why?
Does the projected cash flow stand up to scrutiny by the lenders?
I am not surprised that stage 2 finance is delayed further. The simple truth is there is insufficient demand for the product.
It will be difficult to do an equity raise even with a huge discount.
Agree the drill string still in the photo. I suspect they would want to carry out as full an asssessment as possible before moving on.
Aimho.
Invested here mainly for the Sarawak venture. Success at wick will be a bonus. It’s really commendable that there has been no obvious leaks so far.
Gla.
When one review the sp chart the price fell by more than half soon after the stage 1 finance was announced.
You may pull the wool over the eyes of the inexperienced but certainly not the seasoned and major investors who will be the main driver of any sustainable share price increases. Now as things stand the sentiment clearly indicates that even the inexperienced investors who had been fooled once have learnt to exercise caution....caveat emptor.
It is inevitable that many financial brains will be involved in the negotiations in view of the enormous sum that the company is looking for. In the absence of manipulations, the market is usually right in its assessment of the fundamentals that determine the share price of a company. The chairman mentioned that the IPA guarantee was essential to securing stage 2 funding in one of the annual reports and I believe there is increasing urgency for the declaration of that support to be made sooner rather later.
Thanks golfer. It was an interesting read and thought provoking if I may say so. Page 18 of the same presentation has a graph depicting the projected cash flow. It suggests 2023 could be Year 1 of production. Now, the question I have is how does 2 million tons of contracted sales translates into a positive cash flow of $800 million in 2024 ? 2million tons will only generate an income of $260 million which falls short of the opex let alone service the interest part of the >$3 billion debt.
I am seriously perplexed by the projected cash flow and hope the company can provide some clarification on this.
Anyway, tomorrow is the Lord’s day so will not check in again until Monday.
Intentionally or otherwise, you have left out the important terms....potential......., up to a maximum sales volume.......by year 7. Why mention the future potential if there is present existential threat? In other words, there is really no point in stating the potential sales volume in year 7 if the initial years ‘ sales are insufficient to ensure survival.
It’s a very simple question: what is the company ‘s contracted sales volume from Year 1 of production?
I think the key issue is market demand for the product. There was no mention of the actual contracted volume from year 1 of production in any of the offtake agreements. It is misleading to only just quote the possible maximum several years later. Shareholders, both current and prospective, need more clarity about the offtakes in order to make an informed decision about their investment strategy.
There was already some concerns about stage 2 as expressed by the author of an ftalphaville article well before the watershed RNS in early September. Add to that it is now obvious that some had prior knowledge of the delay as reflected by the sharp drop in sp just before the announcement.
I agree that PIs sentiment is at an all time low at present due to thousands having wised up to what dilution and CBs can do to the sp over the long term.
Regarding the anticipated support from institutional investors I don’t think they will come in until the company proves itself to be profitable which may be well after production has commenced.
https://ftalphaville.ft.com/2018/08/07/1533614400000/Sirius-Minerals--money-for-a-hole-in-the-ground/
....entirely due to......
The 50% drop in the share price is caused by uncertainty about whether the company can secure stage 2 as a result of the delay announced in September. I don’t think it is entirely not due to the extra funding which is a red herring and had been conveniently used to introduce the ideas of dilution, strategic partner etc to the newly evolving narrative of stage 2.
Haha......censorship........so that’s how you deal with the truth. Explains a lot!
M3, agreed that they can smell you from a mile away. That’s about the only thing you’ve managed to get right. Btw, your comprehension skill is letting you down. Do you use google translate?
Apyc, you should really stop using sentimental manipulation to justify your personal motive. That modus operandi is often used by scammers when they rob vulnerable pensioners of their savings.
Happy ramping
Please continue with the relentless ramping. More mug punters are needed. You are doing a great service to the short sellers . Lol
Dinger, if the st2 finance doesn’t happen the company will go into administration. Probably get sold to Icl Boulby for $250 million to repay Gina Rinehart’s loan.
Thanks aberdeen.
Alan, in your previous posts you said the Balcombe test results were transformational for Angus and if this was the case then surely others in the oil industry would share your view. Then you replied to say any acquisition would be a very long way for that to happen. It just sounds a bit contradictory especially from someone who claims to have extensive experience in the industry. Perhaps I should rephrase my question and ask what will it take to prove that commercially viable oil can be extracted from the Weald basin? Will commercial declaration of ewt at HH and Brockham do? Will it need the addition of the same at Balcombe to prove the Weald concept? Or will it take more than these three sites to declare commerciality to prove the Weald concept according to the oil industry standards?