Ann: Tiger Extends Taurus Facility, page-14

Anyone else feel like they're reacting to market sentiment about the finance concerns? Creating breathing room, and space to finalise alternate term sheets. Still, I'm a little disappointed about what this implies. If the revised terms were so advanced, was it necessary to sign this?

What's interesting, is to try and calculate their weighted cost of capital, which can be then applied backward to earnings to learn the 'true' present value. Shares are always expensive - especially at 7c.... So debt cost at this stage, which is cheaper than shares - is 11% + value of the options. Does that put our WACC over 20%? Might bring the NPV down to ~$300M including stage 2 and 3? Also may need to revise present value down for a lower copper price - need to see BFS sensitivities - but that might halve their NPV again. So maybe the market has this priced about right for now..? Still, 20% return for operating mine is just fine by me.

Noticed in the presentation last night that they have a $5M/month payment to Gerald Metals. I thought it was per quarter. Per month -that's aggressive... It will be nice to have this paid off by July next year, but feel it'll be marginal whether they have enough free cash to make it with copper at $2.60. They may have to draw down further on the Taurus debt further to fund it.... Pity they didn't hedge!

It's becoming really clear, how much they need to build stage 2, to bring down cost per lb and make some money. The revised finance really needs to explore this - as they state in the presentation. Cos what's another $100M debt between friends?