RE: Wow! A Billion!There is ZERO concern about financing by management. This play will be hugely profitable and everyone with half a brain knows it. Why there is selling at these levels is astonishing, but I'm gladly picking up shares.
I spoke to management in Perth on Monday. Financing package is almost finished - expect to market next month with a series of road shows. Fisher is in NYC visiting institutional investors and then headed to PDAC.
These guys have all the long lead time items in hand. Now have contract for mining. And have good cash in the bank to keep things moving in the mean time.
Expect to debt finance about 75%, so about A$850MM or so.
Assuming a pop on the news of financing, I suspect A$4 equity for the remaining ~A$250MM, or another ~63MM shares.
That would give them post financing os count of around 150MM. With ~US$500MM cash flow at $30 Mo and a typical 5x cf multiple, that's a US$2.5B mc company, or about $16 share...
MOL is the buy of the sector, and when General Moly finally announces another huge increase in capex for Mt Hope (I expect another ~$250MM increase), people are going to wonder why the heck they paid $10 share for a play that won't be in production for 3 years and ignored MOL that gets there 18 months sooner with 1/4 the valuation.