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Crazy T
Thanks.
I have lead bank sign off at 10 Jan, from memory..
So:
1. where does your “6weeks in” start from please?
2. From your experience, when do you think the DD work for a 10 Jan credit approval would have been carried out, and how long would you rely upon that for a current credit decision?
Crazy T
The lead bank signed off in 1H Jan 24.
DD was prior to that, and sensibly cannot now be relied upon (as outdated).
It’s way longer than a few months, and deals of this size don’t typically take anything like THAT long to progress from DD & VAL to credit approval.
It is atypical.
Fantasy..
I made the point about DD being concurrent a while back, and also detailed that some information is shared across the syndicate, as it is provided (under separate cover) by senior firms who are engaged ‘once only’ to carry out project, asset and financial due diligence (FDD) for all prospective lenders.
Further, if it’s not done co-terminus then lenders are benchmarking information relating to different periods of time, which is inconsistent.
I took a load of flack from the “I worked for the Midland in Chichester for 25 years” posse at the time, but this IS how it’s done.
As to the second lender - I can only assume that their dominoes are super-glued to the table… the timing difference (with a reliance on the same work) is completely baffling to me.
Many thanks NickE
Okay so no names directly mentioned, but Kefi is getting heavily referenced here
Ethiopia’s biggest export in the making (even before Gold taking off from $1600)
Further… FDD is nearly always carried out by a top 5/6 firm, especially on a deal of this size and nature.
They will not do the work twice (or more) for each co-lender.
Same with asset valuations. It’s one piece of work and the output is shared.
Hi Catbert
In club deals (senior debt-provider syndicates) underwriting & credit functions do rely upon elements of common DD & FDD (Financial Due Diligence) for example - external valuations and reports. These might be addressed separately to both lenders, but would in fact be the same piece of work.
I have done this many times in practice, and also conferred directly with co-lenders to confirm a mutual understanding of same.
I do recall HAA detailing something along these lines on an investor presentation.
Hopefully we will hear something soon.
GLA.
I'm about where you're at Mafs.. for me that's a significant investment - I'm not a high roller by any stretch.
My niggling doubt remains - The lead bank credit committee approved their piece on the 10th January, and here we are (3 long months later) with a second bank syndicate member (relying upon the same DD, done at the same time) STILL unable to make a decision. To me, that smells off.
I'm sure we'll get some form of indication shortly... but Jeeeez it's very, very painful (like everything else with HAA's name on it)
Agreed Rob… this will generate its own momentum once that second bank gets over the line. It is taking a long time..
There is a huge amount to look forward to, and it will speak for itself when the brakes are off.
Genuine curiosity.. nothing more.
Thanks Rob. Some of your posts are relevant and helpful, grateful for those.
Some are however, hugely left field and grasping at straws for the sake of it.
IMHO… good luck
Thats just me being honest.
Hi Rob
I maintain that your level of detailed posting is abnormal, to put it mildly. It’s forensic and it’s never-ending.
It is time for you to level with this group of people and answer one simple question.
Are you being paid to post this stuff? or do you have some form of commercial gain in doing so?
Otherwise, I scratch my head in wonder.
Please provide a succinct and straight reply.
Zero cut & paste ballox needed, thanks
Well said Fantasy..
If you can’t get a deal done NOW.. you never will..
Harry has an answer for everything, it’s normally short, lacks detail and is condescending in nature.
The DD shared by both banks is out of date, and still no credit decision. That’s bizarre.
I think they are trying to slot in an alternative second fiddle on the debt piece, and that player is playing catch up.
Why else would this drag on & on?
J’espair with HAA
You can fool
Some of the people some of the time - and all that.
Harry has a serious reckoning coming up..
He is big plane with a short runway - the guy with all the chat with the girls, but a small weeny..: a guy with an ego that the truth can’t cash..
Deliver or have the decency to FRO…
Aside to the obvious value creation & acceleration.. look at the board demographics of Kefi - they all need a big cheque, a big chair and a respectable exit.
It’s tired talent.. it’s gone about as far as it can go.. it needs a huge shot of capital and new blood.
The best thing about Kefi is the hard assets..
Sell and take the certainty.
The market makers are a party to a sale & purchase agreement, which sets the market price..
It could just as easily be Daffy Duck sells to Linda Lovelace
All very interesting, but the price isn’t interested in the details of the seller and the buyer.
Price is price and a trade is a trade