Ann: Austral Resources Appendix 4E, page-52

@NeilFinn good work....

We think the Pre-payment is not the same as an interest and amortising Loan? Glencore wants the offtake and to secure that offtake - Glencore had to provide cash upfront for future delivery. So don't think of this facility as a cash interest loan. Austral deliver the product (Glencore deduct the sum that they had payed for upfront based of a prescribe scheduled delivery structure, and Austral get paid the balance after Glencore deduct its monthly reduction [the structure typically is governed by a prepayment contract] typical interest are single digits usually 8/9% and backed in the offtake agreements - please note Austral get a premium on Cathode above LME prices (Traders are paying US$80-US$150 per tonnes for Cathode ), Plenty commentary the Chileans are getting more than US$200 per tonne premium above LME prices.

Secover (HFO) loan is a capitalised loan = meaning Bullet payment at the end of the loan maturity so no monthly cash payment.

Wingate we think you are close - however their repayment schedule are straight line (we will be surprise if Austral hasn't paid down to now $20m (so that effect the interest as they amortised the principle)

In all Austral Operation we believe Austral is Cashflow positive = Austral are repaying its debt and corporate at this pace we think the company has enough cash.

If not December end $1.5m cash (company should have raised - but didn't = Very clear generating cash and the debt structure repayments are under control).

We think Austral has more than $5m in the bank (that is assuming Wingate repayments and Thiess new payable structure if DEC,JAN and FEB made circa $4m cash each month.

DYOR