focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Daytrader2, i have actually been to Saltend, i have also been to Angola and many other West African countries having worked there for the last 22 years, until i retired. i am also only interested in Fundamentals. i have noticed that today you are trying your damndest to trash the project and PA. but yet to address any of my own posts. RE SA funding, the South African bank is a syndicate arranger. The debt holders being the Quasi government finance organisations. i dont know for certain but the ECIC would be included to provide insurance cover for the South African companies fabricating and then exporting equipment to Angola.
by way of justification for the inclusion of ECIC in the syndication. A considerable amount of the fabrication will be carried out in South Africa for Export to Angola. As per your extract
The ECIC provides insurance that enables South African exporters to offer their services and products on the international market. It has a particular focus on emerging markets in Africa that are considered too risky for conventional insurers.
Its overarching goal – and its mandate from the South African government as its sole shareholder – is to make South African exporters attractive to international buyers to attract foreign income, and stimulate domestic economic growth and create local jobs.
Hi Theo, i read that a swell, i see you didn't post the link to the projects page. https://www.ecic.co.za/ecic-projects/projects/
China, thought about it, then ignored it. its in the open for all to see and been addressed
Cicero have demonstrable credibility SP. As nobody knows who you are i know who i would listen to.
Rare Earther, it was in the AGM slide presentation, for at least the last 9 months, its been development bank loans for Longonjo and bonds for Saltend. the only think i wasnt sure of was the size of the loan for Longonjo. thought it was 250, todays advise is 150
Fridays wasnt an RNS either, i guess that was BS as well.
the SA bank is ABSA, they are the arrangers for a $150 M syndicated debt package, from UKEF, DFC, IFC and ECIC.
UKEF - UK Export Finance (UK Government)
DCF - US International Development Finance Corporations 9US Government)
IFC - International Finance Corporation (World bank)
ECIC - Export Credit Insurance Corporation (SA Government)
all in the AGM slide package
its always going to get diluted. Nobody gives $220 M without expecting a return. This is a typical structured finance operation with the investor taking direct stakes in the OPCO's. I suspect In the region 25-49 percent in Saltend and 25-34 percent in Longonjo. 500 + 10% contingency = -$550 M capex , $325 M ($ 175 M-$150 debt and bonds) -$220 M equity, (40% of capex). Which is without a capital raise from the 75 million shares currently available, (admittedly not worth a lot at the moment). It works fine
Theo, extracted from Fridays note. "Accordingly, the Directors are engaged with the Strategic which would potentially see an investment of up to US$220 million subject to the required conditions precedent being met. The transaction contemplated would involve an initial conditional subscription for approximately US$10.8 million, followed by a further subscription for approximately US$209.2 million, subject to further conditions precedent."
And we hit a ton!!!!!!……. I straighten pictures as well!!!! Apologies for being flippant.
Nearly a record
Im fine with that, should metaphorically shake on it
Eloro, its looking entirely possible.
Eloro, I'm sure you like throwing grenades in, just to elicit a reaction. Kicking my self at the moment
I've possibly done more these than you, im not saying that the information contained within the documents you mention is not required or that all the boxes dont need ticking. but how that information is collected is not set.
DP there isn't a set formula for this. only thing that is need is for potential financiers to have access to the data required to make their decision. The pilot plants and process verification was completed 18 months ago in Australia. All the data that was required for formal documentation of the DFS, BFS etc that you mention and that are very helpful documents if discussion weren't already being held with financiers, would also have been required to produce the FEED document last year. for me, the biggest mistake was PRE calling it a FEED, because it wasnt, it was closer to a BFS. the feed being an engineering document that is of very little relevance to an investor, apart from the summary page. and the budget pricing. Since then, budget pricing of +/-30% has been converted to project pricing including +/- 10% contingency which is normal when carrying out project final costing. For Saltend the cost was projected to be be $250 million. representing $195 million, +10% contingency, plus expected finance costs before commencement of cash flow. it was the latter component that made PRE consider pushing the time line back to when more favourable pricing was expected to be available. a finance cost of $35.5 million, assuming a drawdown of 1/3 in year one with the balance in year two, would require an interest rate of exactly 10%. at the time, Bond rates were heading towards 15%. not due to the high risk of this project specifically, but due to lack of liquidity in the bond market generally, which was a far better position than 3 weeks previously when then the bond markets were closed completely. And yes, i do realise that i is 21st March and 0nly 10 days left until the end of Q1
that's fine, my personal opinion is that we are way past that stage any way. All things being equal, company guidance is that funding will be announced in Q1. in the absence of any new guidance, i will assume previous advice is still current. today is the 17th, still 2 weeks to go........
Whilst Coola is a very promising prospect, the level of exploration is very limited. consequently valuations would be correspondingly low. Pensana paid much less than a Million USD for Longonjo, the valuation didn't come until the verifiable assays had been completed. i dont think selling Coola would provide much in the way of funding for Longonjo at this time.
An opinion that the US and EU are entering into a race to the bottom for green subsidies against which the UK on its own will not be able to compete. On a like for like basis that is true.
Brexit not a great help, but at last we aren't fighting within the EU for central funds and can present the merits of. Saltend on a geographical and standalone merits. Of which there are many. UK dot have to equal the EU/US incentives. But they do have to try. You've got to be into to win it.
Much as it sticks in the craw to agree with the Labour Party, Andrea Reeves statement " (the Shadow chancellor) may have nailed it. "She notes that Grant Shapps has called action taken by the United States "dangerous".
"I'll tell you what is dangerous - it's sitting on our hands while others are acting."