Ann: Trading Halt, page-5

The question is asked,
“How can a company such as ARU
capitalised at around A$70M raise the
estimated US$680M (A$872M) capital
expenditure to get into production?”
In our view, the answer is in proceeding
with a project equity sell-down, which will
facilitate the path to project financing –
particularly if it involves an end-user who
is more interested in offtake contracts
than making a killing on the investment
(i.e. likely to pay more than an arms-length
investor).
To illustrate this, the graph on the left
shows, (based on our valuation
assumptions), that if 60% debt financing is
secured for the Nolans Project, bringing in
a partner to take up 40% project equity
would leave ARU with A$117M equity
funding to raise. A 50% partner would
require ARU to raise just A$59M equity.