Ann: South Erregulla Update, page-22

Re Haber, when gas price was in the 3s, it made sense because of the huge disparity in the value to be extracted from our gas between local gas price and downstream prices. That value gap made it worthwhile to consider the upfront capex as well as taking other risks because it would have delivered the necessary rate of return on capital invested. However, Haber is making much less sense RELATIVE TO gas being at >8. While I agree with national significance of having a secure source of fertiliser that is produced domestically, at the end of the day, the board must make decisions that are in the best commercial interests of the company and its shareholders. So if WA or Canberra believe it is important enough, then it could always provide financial support to STX to enhance the business case for Haber to proceed. In that sense, I can't see the WA govt possibly giving higher priority to Haber than making more gas available given the projected supply deficit in the next 5 years.

Just my pennies' worth

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