Hi mitchdonI spoke to Nathan director on Tuesday last.I ran the...

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Byron

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12/04/24

22:25

Post #: 73324438
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Originally posted by Mitchdon: ↑

Hey @Byron, you have built a good working relationship with the directors of HHR and I would really appreciate it if you would consider leveraging that relationship a little more.

HHR has a conditional 40% share of the project with the major condition being their ability to finance around $100m in capex. They couldn't gain finance in December when their MC was 4 times higher and prior to Labour announcing their O&G policies. With these changes in MC and policies it will be even more difficult to achieve finance moving forward.

At 20% HHR still derives a meaningful income into the future and has no capex to fund. More importantly at 80% to RR the project metrics improve for RR. This improvement in RR's financial return may actually be enough to tip RR into FID territory. @Knightrider63 said a while ago none of us really know the internal policies of RR and they may look at this project very differently to how HHR would. IMO HHR is Phase 1 centric whereas RR would be considering all 3 phases.

Would you put a proposal to the directors @Byron? Essentially a request that HHR meet with RR to negotiate an early trigger of the 20% option in exchange for a commitment to move the project to FID.

From HHR's perspective 20% of a real project is a superior option to 40% of a slow death. (or a project deferred for years) It's the only way I can see any short term improvement in SP. The alternative is to sit and wait in the hope that Labour backs down on their policies.

I value the opinions of others on this thread and welcome any other ideas.

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Hi mitchdon

I spoke to Nathan director on Tuesday last.

I ran the FID idea by him, he simply said nothing happening with that and your idea is irrelevant to where things are at.

In any case the next day he last announcement camce out.

Nothing much else other than RR are in buiness and will behaviour as such. Cash preservation is the goal now and waiting for more Govt Poilicies to shift. he said Industry players are being vocal but wther Govt listen is another story

This is a longggg wait im afraid.

HHR Price at posting: 0.7¢ Sentiment: Hold Disclosure: Held
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