Kem One - comment

Kem One has announced the anticipated new money finance to meet its liquidity needs, settling on €200m, €120m funded at closing and €80m effectively as a new RCF (available for 18 months in up to 3 draws). The headline looks higher than our original assumption of €100m and €150m+, but the actual need is €100m now, as we projected, with the €20m used to meet a new minimum cash covenant of €25m.  

As part of the cleansing presentation, the Company shared some projections on revenue and EBITDA. Guidance for FY25 and FY26 EBITDA is €75m and €133m which compares in line with our base assumption of €117m p.a. We will examine the presentation in greater detail, and will share a fuller note later.  Specifically, we will evaluate the level of CAPEX the Company has projected from its liquidity guidance, CAPEX has been one of the unknown variables.  The Company acknowledges that further CAPEX is required at its Brine wells