Thread by @BigBiteNow

1/7
From today's #ACP half year report ;
"advancing project level funding discussions with two prospective parties so that we can progress our project through to mine construction in a way that minimises dilution for shareholders."

Important to appreciate how low ACP keeps...

2/7
...operating costs.

H1 2020 running at c. £150k, which at c. £436k remaining cash, means the company should make it through to finance close without running costs based dilution.

Such stinginess also reflects well on the above quote on funding and dilution.

3/7
There are also a considerable number of warrants still in play, which should feed through on the coming months, as such things as the mining license and

"binding offtake agreements for the supply of our graphite product" are brought to a close.

4/7
Personally, I can see an equity stake at project level being agreed, lowering ACP's ownership but likely delivering the vast majority of the build costs.

That said, I am still planning for all in c. 800m shares. That sort of level allows a c. 30% equity stake sale and...

5/7
c. 60% total ownership once the government 16% free carry is agreed.

I do feel this BOD with Matt Bull as the driving force, are tenacious enough to do much better than that, but I see that as a free shot to the upside because the above scenario, will make investors a great

6/7
return over the medium/longer term.

Also, the timing of the warrants, will also have a direct affect on what ACP need to do, in terms of dilution etc. So they are certainly something worth keeping an eye on.

On the news front...

7/7
I expect the mining license, finance partner and binding off-takes prior to YE, with actual financing not very far behind.

That would place first production at Q2 2022, which is absolutely perfect in terms of market demand uplift.