Ann: LoI for Cooperation on Strategic Investment, page-49

Thanks Digity

I'll have a crack at this, insights welcomed!


If Yankuang become the largest shareholder and majority, they would need to hold more than 50% of the shares.

Highfield Receive:
$90m USD = $120m AUD
Yancoal Canada
- Paid up Capital of $290m USD = $400m AUD



- But what is the NPV of the Asset? 2.8m tonnes per annum for 65 years. What are the margins, extraction looks deep and costly. Regina is also a long way from any ports...

Yancoal Canada - Southey Potash Project (youtube.com)

TOTAL = $520m AUD approx

Yankuang Receive
'x' shares in Highfield.


400,000 shares on registry + 100,000 shares for convertible notes = 500,000 shares

Add: $130m USD / $185m AUD in shares for Other Strategic Investors. Assume $0.75/share (complete guess) = 250,000 shares

Total = 750,000 shares




Yankuang would receive more than 750,000 shares, but at what cost, time will tell I suppose.... it's really two transactions..

Cash $120m AUD @ 75c/share =150,000 shares
Southey $400m AUD (Book Value) = 600,000+ shares UNKOWN


There will be a truck load of shares on the registry that is for sure, but the Asset Value increases too!

Might be barking up the wrong tree, but key is the Southey valuation in my view