Ann: Conversion of Redeemable Convertible Preference Shares, page-46

I have only used the BRL share to calculate my estimates. I have also used a 20% royalty payment above $150 met coal price. Therefore, an extra $10 in met coal price is about $5 margin extra (BRL has 65% of the $8 and then I rounded it down to $5). I have not included payment of $50 million is spread over the next 4 years, not due right away. In any case, I am assuming BRL wrote up the clauses of payment of this $50 million so they can pay it over time and not right away. Also, I do think that BRL can easily cut the costs down by $10 to 20/ton...Solid Energy was a state owned enterprise, so there must be very easy pickings to be had.

I see many investors are upset by the 500 million share issuance, but I don't understand why...BRL had flagged it way back in 2016. It is naive to think the biggest shareholders would not want to own even more of an asset that they knew would be worth a lot more. And management never really got paid for some years now, so I don't blame them either for wanting to earn some dough. There is merit in the point made somewhere that the company should have offered the same deal to all shareholders, but I doubt they would have received any reasonable cash...so no impact in reality, but at least in principle all shareholders would have received the chance, not just the top 2.

Let's see how the market treats this announcement...I think it is a massive buying opportunity for anyone who missed the whole move to 18 cents. 50 day moving average comes in at 12.6 cents, so I am guessing that it could go down to that level in the worst case scenario...but you should back up the truck at that price.