Ann: Update on KALiNA Energy Centre Saddle Hills, page-38

I recently bought into the KPO story. Down 20-25% so not a great start.

Whilst delays are part and parcel of any project, I thought that FNTP was more imminent based on what management had communicated to the market.

One thing I noticed in the latest announcement is the statement that they have chosen to pursue financing for the project on a merchant basis. If this is indeed true, it must mean that the outlook for power demand and prices for Saddle Hills is very strong. Or it could be an attempt by the company to obfuscate the fact that their earlier financing plans have fallen through. I would have thought that planning to operate the plant on a contracted basis would make financing easier at the cost of perhaps a lower (but more certain) economic return. In any event, at its core Saddle Hills is an infrastructure asset and financing for such assets ought to be generally obtainable.

I will wait and see what happens.

All IMO and GLTAH.