RE: Any PP''s expected"TAM will have about 75MM shares os post financing. If they hedged to guarantee a loan, IRR is over 100%. Almost no mine on the planet has those sorts of economics. That's why TAM is confident they can debt finance 80%"
Thanks for your reply. Why can't TAM debt finance 100%?
We are only talking about a few million here, why are those last 20% so important, and to whom? I have asked recently but I would like your opinion on it, is it because banks/financial institutions feel there is not enough security in the deal without TAM issuing equity to them in return for the received debt financing? That would make sense to me, but in that case TAM could just as well buy back already existing shares on the market and hand them to the bank, the stock is very liquid anyway so it wouldn't be THAT big a problem to pull it off...