Ann: Change in substantial holding, page-24

BOD not too bad, company trying best to progress the project in tough conditions and solo basis. Would be good to see new strategic partners and some divestment to derisk the project. But not much the management/BOD can control there. For now the company management seems to have the support of EMR capital, and this is the big question for me how will EMR salvage this one.

Looking back on the history of EMR involvement with HFR, this started in 2014. During this time EMR spent $93m on 104m shares (currently 26%), average price 89c so under water $62m at this point. In addition EMR is the co-lender to HFR of $25m strategic injection. Safe to say EMR has a substantial interest in HFR.

With the share price where it is it is interesting to think what EMR could do next. 1) Do nothing continuing participate in fund raising rounds to maintain or increase % ownership, 2) Do nothing at all and let % ownership drop and 3) Lob a bid for the whole company say 50c and takeover the whole lot cheaper than its previous average price.

It is favourable to think at minimum option 1 is pursued to keep company and the project progressing, otherwise option 2 may see $100m+ loss on the EMR books. The best option for buyers at this point would be option 3 get a nice buyout premium and get out.