Thx @Lanuit.I think for 5 - When does indexation to CPI start...

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Cungi

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30/08/23

17:10

Post #: 69643293
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Originally posted by Lanuit: ↑

Q and A from meeting
1 - What left to be done in BBP commissioning, any delays? - No, on track going through whole point testing the processes with powerlink and aemo, on track with original schedule, revenues are being generated currently.
2 - Interest expense 45% lower than fy22, why? - Accounting anomaly with hedges in accounts, floating and received fixed interest rates...
3 - A lot of work on transmission capacity, any scope to increase 275Kv transmission line? - KW project has been increased, in discussions with powerlink about potential changes in this regard
4 - Any curtailment that impacted Jemalong during FY23 - Yes, impact was mostly due to irradiance, this was not material
5 - When does indexation to CPI start for KPH, will first payment already be increase? - Fully indexed from year 11 to year 30. first 10 years the fee was fixed and set in 2019 based on CPI at that time.
6 - Underground process at KPH is slow compared to mining, why? - Rock structure at Kidston is extremely good/strong, permanent structures (80+ year life) and complex configuration of tunnels take more work then mining so not really comparable.
7 -Bulli Creek FID and KW FID CY24, clarity which is first? - Both project timelines are heavily impacted by grid connection process. Both are progressing simultaneously and will go with whichever is ready first.
8 - BBP and KPH - Debt repayment plan? without dilution. - Interest rates are hedged long term. DIVS maybe FY25 when KPH operating. Dilution, we are conscious of this and work to have the best outcomes for shareholders.
9 - 1MW coal to 8MW renew ration in graph, why? - Capacity factors (sun/wind), demand increasing with electrification of economy adds to this also.
10 - Opportunity with QLD pumped storage Barambah dam/Pioneer Dams - dialog with QLD gov and QLD hydro
11 - BPP Tesla rev share agreement, more details? - 8 year agreement, Tesla operates it 100% using auto bidder. Guaranteed floor level of revenue, share % of above that floor.
12 - Revenue Projection graph, how much BBP? - Jemalong and Bouldercombe merchant prices are both reflected here.
13 - Tourists at Kidston gold battery? - Some interest from 3rd parties, in favour and would support. will see once the Hydro project is complete.
14 - Discussions with PV manufactures for stage 2 KS? - We are engaged with suppliers and EPC. Most likely Bulli creek will occur first.

I was a bit distracted by work so missed a couple points or may have miss heard.
Only comment form me is on Q11, I got the impressions they were already aware of how this was going to work out from commissioning and considered providing more info but did not.

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Thx @Lanuit.

I think for

5 - When does indexation to CPI start for KPH, will first payment already be increase? - Fully indexed from year 11 to year 30. first 10 years the fee was fixed and set in 2019 based on CPI at that time.

My take on Craig's answer was that for the first x (10?) years, the indexation is a blend of CPI and fixed % increase, as when the deal was struck, inflation was close to nothing.

Last edited by Cungi: 30/08/23

GNX Price at posting: 14.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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