What a mess this is turning out to be.
According to gridder, no J/V funding as FAR have confirmed the US$350m is for J/V finance.
FAR's statement re that finance, is it isn't approved as yet.
That leaves FAR US$275m extra to find for their total share of phase 1 which is again much higher than their market cap.
No J/V funding means the interest rate FAR will pay will be closer to 10% instead of say project finance at half that.
Everybody still happy?
How are they going to fund the extra and that's if FAR get the ok for the replacement J/V finance?
FAR will need to sell half their interest in the field.
If they get US$5 a barrel that might cover US$200m at rough estimate.
Then they need to tap S/H's for the rest as well as working capital for other ventures.
Everybody still happy?
I am now convinced this management has lost the plot.
FAR Price at posting:
5.1¢ Sentiment: Hold Disclosure: Held
