Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
Although not explicitly said there is enough text/video to believe that the deal is as good as done and it's all about MARGIN,BREAK CLAUSES AND TENURE of agreements.
Also counterparties looking at the same deal for the next project.
You want World Bank IFC etc participation as this does potentially de risk geo political risk although to be honest Paraguay has come a long way in the last 20 years.
An IRR of what's been suggested or even lower where almost everything is fixed for hopefully matching tenures is just a no brainer. You do that deal every day. There is nothing overly complicated about what the company is trying to do here.
Actually I rather hope all that is happening now is seeing if there is any additional margin to squeeze out of the trade to keep the IRR as high as possible. The one thing I have never asked is the duration of the fixed cost of electricity as I guess the product cost duration will have to match. As far as build out repayment is concerned I'm not sure and what is the lifespan I guess on thins like electrolyses . Stupid of me to not of asked
I might of miss heard but in the discussion video at COP28 OM says building a billion $ company. If a IRR above 25 then he may well be right and they can lock this all in before even producing. With base load electricity needed for this type of production and for it to be green there are no other countries in the world that can really offer what is being offered.
From what we have been told either through an RNS or through other statements I am hoping that it is a case of choosing the best partners for finance, off take and build out that best fits with the companies vision including phase two. So best to make sure everything is lined up given the size of these projects.
Actually in the early days I believe it did dip down towards 50. Anyhow a current Assessment would be they have done and achieved everything they have set out to do bar one which according to the company is really just crossing the t and doting the I. Cheap electricity (base load), close to source, 100 year old proven chemical process, short supply chains in both directions and ample demand for product.
Current downside small cap , ownership concentration, insufficient promotion not good for fund investment stock trades like it is on life support
A thought....at the moment the shareholders hold a percentage of the remaining 28% of atome now representing approxiamately 50% of PPC value. This quite honestly is the only real reason I still own this stock quite frankly. After the consolidation if the company does another capital raise at some point are holding in this company will get diluted. I personally would like to see this 28% of Atome distributed to existing shareholders now. I would be interested in anyones thoughts on the matter
Well a 10 year slow car crash not one of my smartest moves!
So possibly by the end of today PPC taking out the value of atome may be trading sub 1 pence!
PL owns 28% in Atome but actually via PPC he owns 28% of another 28%!!!!!.
Interesting is it not