q9, Based on the CSD release on 7 July, SPM will have 68% (600m...

q9,

Based on the CSD release on 7 July, SPM will have 68% (600m + 30m) shares and SPII will have 11% (diluted from their current 25% holding). This gives a total of 79%. The total shares on issues will be circa 880m, inline with Early1's spreadsheet.

Whilst the convertible note can be converted to shares, this would only be the case if it was more beneficial to shareholders at 10 cps than refinancing the debt. My opinion, is that refinancing will be a better option, and will likely be all rolled into a senior financing facility for funding the tin circuit Capex that is secured by the major assets. My guess is that CSD did not want any lean over assets as part of the 16.5m loan, so as not to complicate any financing arrangements down the track. In this case, the only option (so as to give SPM some collateral for their loan) was to make a convertible note. In this case, I believe it is unreasonable to include the 165m shares for this conversion. Very few companies run debt free, and indeed it is not efficient for companies to do so. Sorry, that was my long-winded answer to your question! So I think we should use 880m shares for any EPS calcs etc.

Cheers
Pecs