Ann: Trading Halt-TNG.AX, page-78

Pukeko,

Below is an extract of what I suggested re cashflow needs back in March '16:

"They say Cashflow is king, so I thought I would just put some current & projected numbers up in the context of Project Finance timing:

The figures in the table below are extracted from TNG cashflow statements to Dec '15. I have simply extrapolated thru to Sep Qtr '16.

What concerns me is that without a further cash injection, TNG potentially has A$2.4m Cash at Bank to start the Sep Qtr '16. If the Est. Cash Outflow continued at A$2.0m for the Sep Qtr '16, Cash at Bank would clearly then be insufficient.

So, this suggests that either Project Financing is well advanced & will be completed by the end of the Jun Qtr '16, or, we will need a CR or some other capital raising to maintain appropriate cashflow.

Some interesting scenarios ahead. The next 3 months appear to critical on a number of fronts."

So, on the basis that TNG needs a cash top up by the end of Q3 (say $4-6m) to take it through to the end of 2016 (when PB is forecasting that project financing will be completed) I am definately warming to either SMS, Catepillar or Downer taking a equity stake.

Marc111's good pickup suggests that SMS could become a significant shareholder as well as the conduit for TIVAN financing through the German exim bank. And, an accompanying step could then include the provision of the new TNG Chair from SMS.

With the TNG/SMS potential global future with TIVAN, an SMS Chair would make much sense.

PB has again forshadowed this week that announcements are to be made soon re the new Chair + other Exec appointments.

The current visit of the SMS (finance) team & the meeting between PB/NT Govt/NAIF next Mon/Tue is tantalising timing for sure.

So, if it's not SMS in the current Capital Raising play we can turn our attention to Catepillar & Downer.
PB hasn't changed his position on turning over the first soil at Peake by mid 2016, so Cat & Downer may be the fallback for the Cap raising?

Additional cashflow also becomes an issue for the TRR spinoff & potential acquisitions. as we know, these were subjects referred to by PB in the article this week.

We know, from the previously announced hive off conditions, that TNG was to advance $1m to TRR to get it through year 1. If those conditions remain, this needs to factored into TNG cashflow.

Likewise, an acquisition (depending on structuring) may also require significant cash. It could of course involve TNG shares in lieu etc.

Equally, with Zinc getting global interest again, Manburrum may come back into the sell zone? From memory, the sale that fell through in 2013/14 was going to raise $5m, at the bottom of the market. However, this has the potential to provide cash in lieu of further dilution or cap raising. Sale would of course dilute the TRR value.

Many wheels turning for sure.....strategically, I hope the SMS scenario is the one that plays out over the next few trading days? It would make a lot of sense.

Jvest