Ann: Financial Results for 2016 Year, page-3

Hopefully all the bad news is slowly disappearing into the past.

Good news today on cost reductions and market sentiment and an emerging EBITDA and positive operating cash flow.

Good news yesterday on the new mine path targeting higher cut off grades in this survival period, and dozer push to ensure the processing plant can work at full capacity and not be limited by the dredges capabilities.

I see Refinancing as the big hurdle ahead. With last year shot to pieces when the incident in August prevented Norway from demonstrating what it can do, the JV doesn't have any track record to rely on during the current negations for refinancing. Whilst the construction risk is a thing of the past, performance ability is still a forecast .

I've been a bit worried that Eramets balance sheet, which is undoubtedly the strength behind the joint venture, was very shaky.

I saw the following when I looked to see how they reported the results, which takes a huge appoint of pressure of their cash flow.

Short but to the point.

ERAMET group: 2-year maturity extension of the Syndicated Revolving Credit Facility
ERAMET announces the renegotiation of the terms of its €981 million Revolving Credit Facility, extending its maturity by 2 years. The initial maturity schedule included amortisations of €85 million in January 2017 and €896 million in January 2018. Amortisations have now been extended to €115 million in January 2018, €85 million in January 2019 and €781 million in January 2020.
This agreement with ERAMET main banks contributes to the improvement of its balance sheet structure, together with the Group’s cost reduction and productivity improvement plan, an increased selectivity on investment decisions and the implementation of an asset disposals programme, most of which was completed in 2016.

I await with interest the announcement on our refinancing.