FAR (ASX) EGM Meeting Notes

Originally posted by Sojourner ↑

@Riskup -Thanks for the summary of the messages given at the meeting from FAR.

This is my take on it as a critical investor who tries not to believe everything the management teams have to say:

Woodside bought shares in COP entity, Entity is operator

Woodside has effectively squeezed FAR

Woodside has claimed only bought entity.

JV agreement is not black and white

A Joint Venture agreement that is not black and white? And who's fault is that? It looks like COP's lawyers were better than FAR, potentially giving them a back door to squeeze FAR. I've heard terms like 'technicalities' floating around... but rules are rules. If murderers can get off on a technicality, COP/WPL can get what they want on a 'technicality'. FAR's lawyers might just not be up to scratch, but we'll find out soon. No one to blame here except FAR and its lawyers.

Was expecting December PE decision

FAR has no credibility on estimating timeframes. PE was supposed to not take more than a year according to management

First cash call end February, WPL has 2020 work plan and budget.

And FAR seem to be completely caught off guard, trying to get finance at the last minute by massive dilution and a lot of expensive debt, all of which is still not nailed down yet. Very unprofessional.

No shortage of banks wanting to sub under write.

Really? In December they said they had $300m and were waiting for the last bank to approve the last $50m in the week of the 6 Jan. Now it's down to $200m and they're chasing $100m. Never mind the fact the total has been revised from $350 down to $300m USD.

Mezzanine, second tier lenders, won’t announce for 4 or 5 months. Mez should be easy to get

At 14.5% libor which is what they've assumed, we're dealing with sharks who would be eager to charge rates worse than my credit card providers. This is not something to be bragging about. It's like saying, "plenty of pawnbrokers are willing to lend to me". Of course they are, because they're going to make a killing off your desperation.

WPL couldn’t do project finance? FAR participated in meetings for 2 years. More experience in FAR with project financing than WPL.

FAR has more experience in project financing than WPL?! LOL. Look at this shambolic financing strategy that keeps changing every hour (for the worse). If I were there I would've burst out into uncontrollable laughter.

Sell to Total / Shell? could still be an option, but only if price is right.

This is probably quickly rising as the most viable option given their lack of competence.

Struggling to have market recognise value, standard for this stage of resource development project.

And whose fault is this? They've had a lot of successes and failed to sell it.

Risk of take over.

By who and why? Maybe a take over of the board to install new management perhaps.

Woodside has been very quiet over the last year, haven’t promoted project, banks are wondering; is the operator committed? Woodside should pipe up now.

Are they serious? WPL spent half a billion to buy it off COP, and a lot more money to prove it up, they have included it in its presentations a key part of its growth plans... and according to FAR 'banks are wondering if the operator is committed?' FAR is just making ridiculous excuses. I hope not everyone at the meeting swallowed this garbage.

Another Capital Raising within next 3 years? Never say never.

haha, yes, never say never. Too many billions of shares have been issued at rock bottom prices to rule that out.

WPL has been gold plating the project.

They are accusing WPL of pissing money up the wall just to spite FAR. As if WPL is going to try to spend more money than it needs to. Believe it or not, WPL are actually trying to make a return for their shareholders and a lot of the management there have shares in the company.
This is just another Another pathetic blame shifting excuse.

Massive availability of capital in USA for shale.

What's this got to do with FAR?

Would do PE again, right to be heard & process.

Easy for the MD to say, who is getting over $600k in un-risked salary, she's got little to lose. Given the massive dilution, I think many shareholders would disagree.

Expand

With regard to the 2% over libor on senior debt... having read some of the other comments, I'm inclined to agree this is hard to believe - I'll believe it when I see it. All in costs, no caveats.

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(20min delay)
Last 49.0¢		Change 0.000(0.00%)		Mkt cap ! $45.28M

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49.0¢	49.0¢	49.0¢	$10.77K	21.98K

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