RE: RE: RE: Execution This is an assymetric bet.
Investment Quebec has funded about $235M in long term, non-recourse debt, at favourable rates of about 5.5%. For their risk exposure, they are getting $13M per year and can only recover the collateral in event of default. They cannont seek compensation from elsewhere in the company.
The annual production capacity will be about 437,000 ADMT. Simplistically, with a floor of $1200 and costs of say $800 (overly conservative to make my point) the net EBITDA produced would be $175M.
Think about that.
IQ holds the risks and gets $13M. FTP investment relative to IQ is minimal and gets $162M.
You have limited downside and huge upside. They've already proven their ability to convert a mill successfully.