Blackwater sell down, page-10

I not aware of a definitive position on this from WHC.

There's a couple of markers, but these may be ancient history when the time comes to decide:

- on results calls, before the acquisition was even in the market, Paul/ Kevin noted that without debt/ leverage internal IRR hurdles were much harder to hit for new project approvals. This was said in the context that as a Thermal coal company debt wasn't available to them so not really an option. They also expressed a desire for more met coal assets, with access to debt being one of the benefits.

- on various results calls thru the acquisition phase Paul/ Kevin stated that future div's would be paid only from the thermal side of the business, until the financing debt had been fully repaid. Then capital planning would return to normal.

I expect that a level of debt will be retained 'permanently'. How much, will be a BOD decision to suit circumstances/ market conditions. Probably lower than current, and probably not nil.

How much is then paid as div's will follow their existing capital management policy, with a likely preference for buy-backs if BOD determines it to be value accretive at the time.