Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Thoth2 - Thanks for sharing that. Iclaprim should be a different story because of its safety profile in patients with AKI
Hi,
Can someone help me with a question re: debt. CF said there were $1.5 billion of commitments from the banks.
The other half is expected to come from the IPA guarantee. But that is just the guarantee- the money still has to come from the banks. Is that going to come from the same banks or new ones? I'm unclear.
Thanks in advance.
Stokey - I agree. It has been tough for him too. He could have delayed this announcement until after the TORP’s, and waited for the sp to rise, but he did the right thing. The increased cost of the tunnel should have been forseen - but we all make mistakes. This is a costly one.
I’m unclear why he thinks there shouldn’t be more than $3bn debt.
I'm puzzled by the timing of the announcement. Why did CF not wait till the TORP's were signed, let the SP rise (get your bonus shares) and then tell the market more money is needed? Maybe the SP hit would not have been so dramatic.
KOH - Difficult to blame CF or the company as so many parties were involved in the discussions.
On a day of SP carnage and doom and gloom, its worth reminding ourselves of the positives from todays' news:
$1.5bn of funding from banks is on the table - that is new and on its own big news
The project remains on time
Project is further de-risked with procurement 87% finalised
3m TORP's are close to being signed
Balance that against the extra need for $600m more, which is less than a years revenue.
CF indicated that some of it will come from equity, and the rest from other sources. If we say another $300m is from equity, its not that big a deal all considered, hoping that we will raise that once ST2 funding is in the bag and we have a re-rate of the SP.
Overall I haven't sold a single share, and remain a LTH - with confidence in the BOD that the mine will be built. I'm also mindful how much of a personal blow this is to CF, because he is now unlikely to get his bonus shares which were due him if the SP was 43p by mid-september
Spare a thought folks for CF, who is now unlikely to get his extra shares which were predicated on the SPbeing 43p by mid-sept. He could have tried to delay this news, but has done the tough thing and the right thing by putting the interests of the company First and getting this mine built to last.
It feels like a punch in the gut initially, but on second thoughts it going to ensure a more robust MTS - with a thicker wall and bigger diameter, and less risk to Sirius. Better for the long run. I’m sure someone on the Call will ask about the govt. guarantee..maybe in the light of today’s announcement there will needn’t to be a fresh discussion.
It’s good that CF is mindful of dilution and is considering other options. This will take. Hit short term, but with new TORP’s being announced soon, should recover, and if ST2 funding is confirmed in 6m time , should re-rate. All my two pennies worth...
I think stage 2 funding must be close or 'in the bag', if you consider the way the building work is progressing at full pelt.
If there was any doubt, they would be trying to save money and slow things down. I'm quietly confident we will get the funding we need. Not long now...though it may feel like a long September..
Chilting - how do
You know all this stuff ! Are you an agronomist yourself?
Chilting- that’s really useful to know
Thanks
OR - producing more from less land is improved yield.
Either way, a cost/benefit analysis would be great, as they have done in some of their trials.
Cost*
OR - Re the Potato trial. Would be even better if they did a comparative OST analysis to show that using Poly4 was overall financially better for the farmer - that’s ultimately what they will be looking for.
Well spotted Cranleigh!
Sailorchief: I’ve also heard that Polyhalite is tough to mine. No doubt the BOD will be working on a solution to this - having learnt from the Boulby experience.
I’m also a LTH and have a chunk invested here. With the excellent P3 results and Sandgrove accumulating, it gives me the confidence I need to stay long. Patients need this AB and Wainwright predict a tripling of the sp from here. Good enough for me.
Hi My view is that the impact should be minimal. In fact may be one of the few Brexit proof stocks around
Thanks PAA. So it’s good news assuming the shorts are bond related. All of them may not be of course - but can’t imagine why!
Carondean - why are rising shorts good news?