Yeah, I was only talking about the REE project as that's what they need the funding for now. Still nearly 12 months until the con note issue kicks in, unless HAS breaches the terms of the agreement, which makes today's AFR article and company response intruiging.
A sad state of affairs really. The $70m of interest Wyloo will accumulate over the 3 years is almost worth as much as HAS' holding in NEO at the current share price. Then the $150m principal is around three times HAS' current sp. That's why the project debt funding is so critical for HAS to secure very soon and get the share price higher before issuing any more shares.
The best case scenario would be for the companies to restructure the agreement whereby Wyloo becomes a cornerstone investor in HAS in lieu of the interest owed and has the principal paid back out of the profit once production starts. It would mean Wyloo taking a longer term view and ensure the project succeeds.
HAS Price at posting:
28.5¢ Sentiment: None Disclosure: Held
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