AMI in the media, page-41

I’ll try.. based on my (limited) knowledge. Mining companies need to provide guarantees to govt departments etc on their ability to perform their rehabilitation duties.. for larger mining companies this typically comes in the form of a bank guarantee.. where the mining company gives the bank a fee per year to guarantee/insure the mining company can make do on their obligations even in the event of a natural or operational disaster.

Smaller mining companies without a credit rating or track record typically need to cash back some of these obligations.. this is what the CFO is talking about when saying they have decent chunks of cash tied up in backing these obligations which they would like to free up with a new bank guarantee. Trafigura has provided a guarantee facility to A$65m limit which they are paying 6% interest for but AMI have exceeded this limit so are having to cash back the excess. He wants to refinance this limit - so make it larger than $65m but also “re-term” the facility meaning to extend it from current August 2027 deadline to something much later date.

So he ain’t talking about equity raises.. just getting a new bank guarantee facility that is larger (guessing A$80m+), longer term (guessing 2029+) and perhaps even better terms. This will free up some cash currently sitting as restricted for the company to utilise