For anyone confused by Halliday’s weirdly put concerns please consider OZL’s cashflows, not just from Carapateena but also from PH. Sure it could be reinvesting a lot of the C cashflow, but even if WM gets a FID as early as late 2021 there will be perhaps a year of engineering before the capex heavy lifting really begins.
As a longterm OZL holder I am confident AC will be able to find the funds for WM if the economics meets his criteria. Sure as he has alluded to there may be competition between projects for capital, but that should be bau for a multi-project company. For AC to be continuing to enthusiastically invest in WM tells me he is confident of it proceeding. OZL with no net debt has a lot of flexibility to fund projects via corporate or project debt, not just from cashflow. There is no fixed “bottleneck”.
The crux of the matter is that if CZI can fund it’s share of the project then I am absolutely certain that OZL will be able to do likewise. And for that the question is whether the project is yet sufficiently robust economically? OZL is not the concern, that is a weird red herring.
EL
CZI Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
