Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Pre pay or pre export finance is an option, but it will be Junior to the bank debt repayment, consequently there needs to be sufficient cash flow generated to cover bank debt repayment and opex costs. Ie they can’t take the first year production in totality. Pre export finance is debt paid for in product instead of cash.
SP, Assuming both you and Reetech are proven correct, I'm assuming that the CAPEX involves a sulphuric acid regeneration plant to ensure that the acid used for production meets the purity requirements for MREC production. At $8/MT, it's still dirt cheap and ends up as a win/win for both supplier and consumer. Does the FEED include an H2SO4 plant.?
I suspect FOMO, just hope it's not unfounded
100 posts in 9 days....... It was worthy of comment, if not a celebration of hitting the century on nine overs!!!!!
I do..... whoops
That's because one of MP Materials' biggest shareholders is Shenghe with 13%, majority of MP product goes to US for processing
Even better,
Because I'm interested, and may well take a punt on this stock. Regarding manufacturing, the logistics costs are paramount; every dollar saved is a dollar on the bottom line. SP's suggestion of $8 / MT is unrealistic; however, the location of the RBW plant adjacent to the Phalabora Mining Company sulfuric acid plant and the potential for piping presents huge savings compared to trucking. If RBW were to include the capex for a short pipeline, probably 6" stainless steel, to transfer 1500 mts a week to a couple of 1500 m3 storage tanks (probably only a 12-hour transfer once a week), they would almost definitely get the H2SO4 for Ex-works price rather than deliver by truck, a significant saving which would justify the extra capex in a very short time. The US Producer price index indicates a price of $188/MT (Compared to $215 MTs 10 months ago), and REEtecs R1570/MT was $84/MT is considerably less; the Rand is in the same region as the dollar as REETechs backup date of May 2023, so that doesn't factor into any price disparity. My own view is that the plant is located next to a source of reagent that is priced at below world market rates with potential substantial savings in logistics costs compared to truck delivery. It's a big plus for the OPEX, but not $8 a ton, I'm afraid.
Publican, every one knows your view, you've spouted it often enough.
Valuation it is, the structure of the fiancing is
$60 million equity from FSDEA (15 million already forward as a loan, will be converted to equity as part of the 60 million, for $20% of the Ozango limited asset.)
$20 million equity/debt in the form of a Convertible note against Pensana
$120 million debt from Absa.
All in the previous company communications
SP, I like the hive. Unfortunately, you also frequent it. I post sensible, fact-based comments. They are immediately denigrated with the total bias that you exhibit on LSE. If LSE is the pits, as you suggest, what value do you get posting unverified, uninformed and incorrect data on another board? I don't have shares in RBW, having heavily invested in PRE and recently moderately so in HZM. (I admit that was a punt at what looks like a bargain price; we'll see how that goes and whether the price is a true reflection of the risk associated with the stock) but most of the comments on the RBW LSE board seem well-informed and balanced, including your own, except for one poster recently. I am tempted. I firmly believe in Critical mineral stock events, though they are getting a bashing. But it doesn't do any harm to diversify within the same sector. I'll also point out the comment "WE" in the post you paraphrased, is the royal WE, I certainly don't subscribe to it, as I've said before
Theo, you're better than that,
Lewis, I'm just tired
Lewis, Theo did at one time say the administrators would be in by Wednesday, sometime at the beginning of April..... he was wrong then,
Theorist, I can believe the warmongering and multiple nationalities, but not sure I can forgive the Golf :-)....
DS22, not sure that retort was the best Defense for the present discussion
Theorist, you know as much as I do where the financing. Is it isn’t. So there is no obviously about it. I’ll concede the point if there is no announcement within the next next 6 weeks, although reliable advice is before end Jan, and the Angolan president has stated an aspiration to announce befor Indaba on February 4th. Unlike yourself, I don’t make definitive statements without facts to back them up, the best you can say is may have done, but even that would be based on your own assumptions, not any evidence based data. The strategy is still on course based on the RNS end October and the AGM
What Lewis says, is absolutely correct . The as-built cost of the project, plus the declared assets equals 60+p. When the equity piece is done PRE, portion of this will be 60+% of 60+p, or in the region of 40+p. But this didn't take in to consideration phase 2 or Saltend, or any future cash flows from profit. And assumes break even only with opex and sustaining CAPEX covered only. The market currently has severe doubts regarding financeabilty, the Angolans are only putting the equity piece in if the ABSA loan and convertible note are done. Ie the project is proved to be financeable. If this does get done on the timeline mentioned for the current strategy, they have got a bargain, we'll see where the SP will go, but the finance risk aspect should be greatly reduced
It was an interesting video, it didn’t just stay you will looked after. It said that all rights and time served will be preserved. Ie nobody was laid off. Although they are going into a work moratorium or construction pause for 3 or 4 months, resuming march or April.
SP it’s tiring and unproductive, what’s the point. I also feel the same about your posts on the PRE. Can We ALL grow up