First and foremost, project financing is highly speculative. Recall that the "term sheet" from an unnamed "international debt fund," contingent, among other things, on raising $10-million in additional equity remains an unknown. Recall that MMEX is an insolvent, super-dilutive OTC shell company, with no business operations, no employees, no management or technology team, no intellectual property, no proprietary technology, no supplier contracts, no customer contracts, and no assets. MMEX sits atop nearly $40-million in shareholder losses and liabilities, and more than $2.1-million in floor-less convertible debt. None of those aspects, all factual, bode well to obtain $50-million in capital.
The next flaw in the analysis, even with benefit of doubt, is that a "refinery = money." As has been proven, a "refinery," if poorly conceived, can easily lose huge amounts of money, become bankrupt, and either shutter, or be sold for pennies on the dollar. Reference the Dakota Prairie operation (now Tesoro) - it was similar to MMEX, but at least had the capability to produce transportation-grade fuel.
MMEX's proposed Phase I, a land-locked, stranded inland regional would be doomed to fail - as is widely known in the sector, a CDU cannot operate at break-even, let alone profit. MMEX could not produce any transportation-grade fuel, or any directly marketable product, and is further doomed by lack of appropriate transportation infrastructure. Again, all factual - there is abundant industry data on this topic, from qualified analysts.
Toilet paper, even lower quality than Cottonelle, will likely remain a more solid investment than MMEX.
News 
Market Data 
Discover 
