Ann: Presentation - Strategic Partnership and Long Term Funding, page-282

I really don't know how some can question our management or indeed this financing!?

1. The bank financing was clearly stated by management to have been in the bag....and while there were a couple of "conditions precendent(CP)" that remained outstanding, I believe that one of them was simply that the company was required to have expended all but a reasonable nest egg of existing cash on balance sheet, and the other related to the Base Case Financial Model(BCFM) for which the key element that was beyond the company's control and therefore prevented them from communicating to market that all CPs had been met, were the latest Woodmac forecasts. I understand that the most recent Woodmac forecasts that were cited in the presentation material on Tuesday from May 2024, remained consistent with their earlier forecasts and therefore as long as they were not changed materially before drawdown, the second outstanding CP was also fine. So simply speaking, so long as LTR had no major nest egg of unexpended cash, and Woodmac forecasts (that had been stable for several months) were not adversely impacting the BCFM we were all ready to draw down the $550m signed and sealed bank financing. BUT guess what??...

2. LTR management had stated way back when in the first quarter that they anticipated they may never need the bank financing as they expected to announce a new "long term funding package" beforehand. Further guess what?... That is exactly what the management announced on Tuesday as promised! No ifs, no buts....

The terms of that long term funding package could scarcely have been more accommodating to existing shareholders. We have a debt companent that attracts EXTREMELY cheap interest expense that comprises of a combination of BBSW +1.5% for the Ford facility(circa $350m), together with a LGES convertible note with floating rate FED funds rate Secured Overnight Funding Rate(SOFR) that is currentlyy 5.33%($379m). Dirt cheap financing for a mining company. I can tell you that Mineral Resources latest bond issue was done at 9.25%pa...so have we got a good deal or not?

Furthermore, the equity component has a conversion price of $1.80 per share, which is the same price as the equity placement done in October last year, and double current market price, while retail shareholders were able to subscribe at $1.47 from memory. So new equity being raised now at the same price at a substantial premium to market despite all the BS doom and gloom predicted by the trolls on here. And finally, there's the expectation of new offtake as mooted in the presentation, which terms imo are likely to surprise to the upside in the same way that everything else this management team achieves.

No financing risk will be faced during our intial production phase starting this month. Before long all this pandemonium will have faded into memories as we commence with production and cash flows and as New Electric Vehicle sales continue to skyrocket and the price of our product starts to reflect both our prime quality and the dearth of new reliable supply into western markets is recognised..... LTR share price will rise and short sellers will, I hope, face their nemisis of purchasing 275m shares back on market.

GLTAH...not financial advice...

regards
DF