Ann: Syrah announces Equity Raising, page-91

I managed to listen to the CR teleconference recording this morning before I had to go out.

Reading between the lines, the DFC wanted more liquidity on SYR's balance sheet before signing off on the loan.

As of 31/12/2024 SYR had $85m. However there were a couple of unknowns like $28m in restricted cash which couldn't be used and $15m required or in a debt resource account for the DOE loan. I'm beginning to have doubts about the usefulness of the $102m loan. There was $4m lost in capitalised interest, $28m we can't use and another $15m in a debt resource account. Doesn't leave much left to help build Vidalia.

If you pro-rata the CR with the $85m they already have, SYR have $148m on 31/12. It will be allocated to

1/ $16m to complete and commission Vidalia (spent)

2/ $46m included the restricted cash as working capital to ramp Vidalia of which $28m can't be spent. They intend to renegotiate the $28m amount once first deliver to Tesla has been achieved

3/ $15m in a debt resource account for the DOE loan

4/ $4m to fund Vidalia further expansion projects for FID readiness

5/ $16m working capital for Balama. I gather to be used before the working capital from the DFC loan becomes available

6/ $50m for general corporate costs and liquidity for the company

7/ $2m it cost to do the CR

The first 3 CN's mature in October 24 at a cost of $122m. Aus Super have agreed to swap debt for equity and to do it before the maturity date to get the $122m off the books before the DFC loan is signed off.

The DFC loan is supposed to be paid in 2 trances. $100m and $50m. This is where it becomes a bit confusing. The $50m is for the completion of the TSF which has been put back a few years. Not sure when they get the $50m. On the teleconference, they said they "expect an additional disbursement of $50m upon signing". Not sure what it means. Is it the first half of the $100m (likely) or is it now a $200m loan?

DOE loan payments commence 20th Oct 2024 and finishes 20th of April 2032 at ~4% interest over the life of the loan. The DFC loan is over 13yrs. Interest is fixed on long dated Treasury rates plus a margin.