AGM 28Nov - Feedback, page-15

Hi Rudster,
Because we potentially have 2 separate (& very different) finance models going forward for Tivan & Peake, & we speculate that a 30% equity dilution at the shareholder level is progressed (really associated with the Peake funding model) then a possible scenario is as follows:

1. Board engages a new equity partner(s) (per the AGM takeaway)...Let's just say Sumitomo/SMS as the potential investor(s)
2. If this reflects a 250m share placement @ .15c then a A$75m cash injection would result.
3. So, dilution theoretically reduces share value down to 11.5c...would this happen? Depends on market view of what TNG is worth at the time & in the future?
4. So, assuming we need to raise A$207m for Peake we could project the following model:

$75m Equity dilution funding
$50m Catepillar equity injection
$50m Downer equity injection
$50m NAIF loan
-------
$225m (seems to look pretty good to fund Peake including contingency)

On these numbers, I wouldn't be too concerned if we are cashflow positive after 3 years!

Our real issue is getting production started.

Good luck.

Jvest