Ann: RIU - HAS Yangibana JV with Wyloo, page-40

Last few days have been quite unusual to say the least. We are in a different world today as compared to when this Wyloo deal was agreed.

Here is what I think is the status today

a) 19.9% interest in NEO is already gone to Wyloo - That SPA was executed so Hastings has lost that upside (NEO shares have gone up 16% after Wyloo acquired them from Hastings)

b) Hastings still has around 623K shares of NEO which have now gone up by $1million AUD. So instead of $6M they are not worth $7M. I think these will keep rising further due to trade war. Neo is a bloody good business... Hastings owe $6 to Wyloo and they can sell these shares for lets say $8M in weeks to come and pocket the extra $2M

c) This is the biggest asset of value - the 60% share in Yangibana that is proposed to be given to Wyloo in satisfaction of remaining value of exchange notes. This asset is worth a lot more TODAY than it was few weeks ago. The term sheet that was signed by NON-BINDING and a JV agreement is being negotiated and subject to approval by shareholders.

My point is ... Is Charles going to negotiate a better deal here given the landscape has changed????

Can the Saudi's (or someone else) give Hastings a better deal for 60% share so charles can settle the wyloo exchange note and pocket another $30M to pay for the equity needed for stage 1???

60% Yangibana is worth more today for sure.