Impact: Positive
Troilus announced that it had received two more letters of intent for a total of up to US$500M in credit to support the development and construction of its namesake Troilus Au-Cu project in Quebec. This includes US$300M from Finnvera plc, the official Export Credit Agency of Finland, and US$200M from The Swedish Export Credit Agency (EKN). Finnvera’s support is contingent on partnerships with a Finnish equipment provider and with Boliden (STO:BOL, Not Rated), which has smelters in Sweden and Finland. Combined with the previously announced US$500M LOI from Euler Hermes (read notable), representing the German Federal Ministry for Economic Affairs and Climate Action, this brings the total amount of credit to US$1B. The company expects to show the framework of a full financing solution in the coming weeks. In our opinion, this is another important, positive milestone for Troilus. The company now has LOIs for credit that would fund nearly the entire initial capex of the project, based on the FS. This also demonstrates the strong demand for copper concentrates from smelters. Although only ~12.4% of the revenues would come from copper (based on US$1,975/oz Au, US$4.05/lb Cu, US$23/oz Ag in the 2024 FS), the fact that the project produces a concentrate opens doors to a range of financing options.
