refinancing, page-60

jph1

I think they really had no option but to expand - 19,000t is still only small ( actually 30,000t is also pretty small on world scale ) - given they have the resource there , they need to exploit it as quickly as possible.

I still believe they will get the finance they need - provided operation is still running smoothly & they are doing everything that they have told their bankers that they would do. Nothing upsets a financier more than suprises !

If you are worried about debt & gearing - look at this - in 1997 Burns Philp & Co nearly fell over , largely due to it massive ( $800m ) debt load , balanced against some $50m or so shareholders funds. What kept them going was that they always were generating a postive cashflow & could pay interest . They were written off by virtually everyone & those that focused on the numbers & the cashflow got a 20x return in a few years .


Risk of refinance still remains, but worth keeping perspective about

Cheers


Baraka