Ideas With all this misery maybe it would be good to speculate a little bit as to what the options may be
First off the required funds from BAJ is $246M * 70% = $172M + 12% cost overruns = $193M
I dont think we need to worry too much about the Koreans, they will fund their 30% quite easily, it really just boils down to us coming in with our end.
MK doesn't like this nor do they want to see the stock get further diluted, yeah they could buy more shares to take their percentage back up to 20% but it doesnt change anything for them except their average cost.
What might be better is saying to BAJ " hey, let us go to 30% ownership and we will give you enough sub debt to get through this build". Oh and p.s. we want Lehner and wasberg on the board
Maybe just maybe the lenders extend credit further... It is good dealing with the US exim bank but the only issue with them is the pool of funds may already be dry... they are limited in the amount of money they can lend annually. they arent like a regular bank. You would have to get the other lenders to agree to give priority to the US exim bank for a further $XXXM ( I find it highly unlikely that the lenders give more debt)
Potentially the Koreans or even Louis Dreyfus come in with some Sub Debt to help with this build
Potentially we have to look at a JV with another company or sell a stake of our 70% to the Koreans i.e. go to 50/50 partners with the Koreans and they take care of the remaining financing
I was told Endeavour is working feverishly on a solution and I have faith that one will be found that doesnt require us to dilute this stock for the full $193M.
Don't mis understand me, we will feel pain, ultimately our landscape has changed drastically and we as shareholders will be in a worse position when the dust settles.
Hypothetically if this does get fully diluted at
.50/share then we are probably looking at a float of 725 million shares.
Here is my math assuming we are
.35 to produce copper ( lets be conservative)
copper at $3.75 -
.35 = $3.40 * 137 million pounds = $466M * 70% = $326m/725M shares =
.45/share