Ann: Investor Presentation - September 2020, page-7

Yep roughly 4% reduction in interest costs.
- New interest rate - 8.2% 800pbs points (or 8%) plus BBSW (assume 0.2%), currently below the 12.5% paid for euroclear bond
- Interest 2020 - TER paid AUD$33M in interest (Euroclear ~AUD$27M [215 x .125] + OCP ~AUD$3M + another $3M from somewhere???)
- Interest 2021 Forecast - AUD$24M in interest (Convertible Notes ~AUD$18M [220 x .081] + OCP ~AUD$3M + another $3M from somewhere???)
- So it is reasonable to assume a roughly 28% reduction in interest, or $10M reduction

A good announcement, and the company has a clear path forward once this refinance is completed.

But what the heck are we doing playing in bauxite.... TER now control a strong core portfolio of cash generating assets. We are breaking even right now in a terrible operating environment, and COULD in the next 1-6yrs generate some real measurable shareholder returns now that the debt deal is almost finalised... But, we think throwing AUD$106M of start-up capital into this Bauxite play is a good idea, while also taking out the convertible notes.

Current Euroclear debt is AUD$215M (USD$150M), the convertible notes are for $220M in funding, and of the cash we currently have AUD$45M of that is restricted cash... How are TER going to let tenders and pay for mobilisation in April 2021? Either there is a significant missing puzzle and a seperate deal funding deal to enable the bauxite development, or quiet simply, it cannot be done... I have to say, I'm disappointed, we have a strong core group of assets that will provide SH returns over the next decade, just run them... And who knows once Adani have built there rail line, maybe our other Qld assets will have positive feasibility studies in 3yrs time when we can use all the cash from our cash generating assets....


Assumptions/comments;