Ann: Japanese Consortium Update on Progress on KNP Goongarrie Hub, page-154

First 154 Last

Share
Profile

Follow
fluffynymph

56,623 Posts.

267

14/03/24

16:34

Post #: 72889571
Share
Originally posted by Jacko22: ↑

Under the deal with Inco/Vale, they were actually financing more like 98% of the capex. The deal was whatever the debt/equity ratio, Inco was to fund 100% of the debt component. The equity component was then based on the buy in (which was Inco 60% HRR 40%). So for HRR's 40%, Inco guaranteed HRR component (by way of loan - 80% of which was to be paid back out of future profits), but HRR had to initially fund 4.5% of the equity component up front as their share.

IB's example at the time went like this:
Agreed buy in percentage was Inco 60% / HRR 40%

IF: CAPEX: $1.4B and debt/equity funding was agreed at 70/30:
THEN:
Inco would fund 100% of debt component - $980M (70% of $1.4B)
Equity split is 60/40: Inco to fund $252M and HRR $168M
Of the HRR equity ($168M) required:
HRR required to fund 4.5% of the equity component upfront, so $19m (4.5% x $420m)
Inco would then lend the remainder of HRR's equity share, $149m (to be repaid from share of profits).

So HRR, in reality, would have only raised $19m to retain 40% of the project, and would have incurred none of the project costs.

Of course you would need to account for the fact that HRR had to repay the $149m loan to Inco 9over the life of the project), so in reality HRR's share of the $1.4B capex, was $168M (being 12% overall of the capex).
@Jogoo

Expand

Anyone feel the synergy with Arafura, why and potential speculation.
ARL Price at posting: 66.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

4DX

4DMedical lands Philips US reseller deal with eye to Veterans Affairs' market post-lung damage

The market's shrugged at China's stimulus measures all year. Why is this one different?

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

There are more pages in this discussion • 18 more messages in this thread...

First 154 Last

Add ARL (ASX) to my watchlist

(20min delay)
Last 40.0¢		Change -0.010(2.44%)		Mkt cap ! $81.86M

Open	High	Low	Value	Volume
41.0¢	41.0¢	40.0¢	$6.62K	16.17K

Buyers (Bids)

No.	Vol.	Price($)
3	12590	40.0¢

Sellers (Offers)

Price($)	Vol.	No.
42.0¢	2135	1

View Market Depth

No.	Vol.	Price($)
3	13815	0.400
3	16895	0.395
1	10000	0.390
3	22499	0.385
1	7878	0.380

Price($)	Vol.	No.
0.420	2135	1
0.425	20808	2
0.430	3255	1
0.435	2289	1
0.450	1150	1

Last trade - 11.16am 27/09/2024 (20 minute delay)

ARL (ASX) Chart

Ann: Japanese Consortium Update on Progress on KNP Goongarrie Hub, page-154

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

4DMedical lands Philips US reseller deal with eye to Veterans Affairs' market post-lung damage

The market's shrugged at China's stimulus measures all year. Why is this one different?

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Japanese Consortium Update on Progress on KNP Goongarrie Hub, page-154

Top Stories

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

4DMedical lands Philips US reseller deal with eye to Veterans Affairs' market post-lung damage

The market's shrugged at China's stimulus measures all year. Why is this one different?

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News