Capital Structure Analysis: HyTerra Ltd

Things are starting to get real for Hyterra over the next few months. Lots of activity expected in Kansas and at the corporate offices in Subiaco, Perth. Favourable drilling results will impact the share price positively, but so will the exercisable options on offer. Below is a structured analysis of Hyterra's capital structure and possible impact. I have run these through ChatGPT and this being the first financial analysis I have run, I am absolutely open to comments and feedback of anything that doesn't make sense or is incorrect.

Pre-Fortescue Transaction:

OrdinaryShares:

• Total Shares: 975,850,433 shares
• OptionsOutstanding:

	Option Type	Quantity	Exercise Price	Expiry Date
1	Listed Options	191,950,000	$0.025	30-Jun-2025
2	Listed Options	45,008,334	$0.03	31-Oct-2025
3	Unquoted Restricted Options	32,150,000	$0.025	30-Jun-2025
4	Unquoted Options	95,941,250	$0.04	30-Nov-2027
5	Unquoted Options (nil exercise price)	46,000,000	Nil	25-Oct-2026
6	Unquoted Options (nil exercise price)	5,000,000	Nil	30-May-2028
7	Unquoted Options (nil exercise price)	14,000,000	Nil	6-Sep-2027
8	Total Options	430,049,584

• PerformanceRights: 44,000,000 (subject to milestone conditions)

Post-Fortescue Transaction (Approved &Completed):

OrdinaryShares (Updated):

• Total Shares now outstanding: 1,633,958,893 shares
  (Includes Fortescue subscription of 644,117,647 shares and recent option exercises.)

Fortescue’sShareholding Post-Transaction:

• Shares acquired by Fortescue: 644,117,647 shares
• Fortescue’s Current Shareholding: approximately 39.42% of current issued shares (1,633,958,893 shares).

OptionsOutstanding (Updated Post-Transaction):

	Option Type	Quantity	Exercise Price	Expiry Date
1	Listed Options	191,950,000	$0.025	30-Jun-2025
2	Listed Options	45,008,334	$0.03	31-Oct-2025
3	Unquoted Restricted Options	32,150,000	$0.025	30-Jun-2025
4	Unquoted Options	95,941,250	$0.04	30-Nov-2027
5	Fortescue Subscription Options (3-year expiry)	322,058,824	$0.051	~ Dec-2027
6	Total Options Outstanding:	687,108,408

PerformanceRights: Remain unchanged at 44,000,000 (subject to milestones).

Maximum Potential Shareholding for Fortescue(Post Option Exercise):

FortescueSubscription Options:

• Quantity: 322,058,824 options
• Exercise Price: $0.051 per share
• Potential Cash Inflow (if exercised): Approx. AUD $16,425,000

TotalShares if Fortescue exercises all their options:

• Current Shares: 1,633,958,893 shares.
• Fortescue Options: 322,058,824 shares
• = Total potential shares:1,956,017,717 shares

Fortescue'sMaximum Possible Shareholding:

• Total shares potentially held by Fortescue: (644,117,647 + 322,058,824) = 966,176,471 shares
• Maximum Potential Ownership: approximately 49.40%

Dilution Impact from Option Exercises (FutureScenarios):

	Scenario Share Price	Shares Pre-Exercise	Shares from Exercised Options	Total Shares Post-Exercise	Dilution %	Diluted Share Price
1	Current ($0.034)	1,633,958,893	269,108,334	1,903,067,227	14.14%	$0.0292
2	$0.040	1,633,958,893	365,049,584	1,999,008,477	18.26%	$0.0327
3	$0.050	1,633,958,893	365,049,584	1,999,008,477	18.26%	$0.0409
4	$0.060+	1,633,958,893	687,108,408	2,321,067,301	29.60%	Variable

KeyInsight:
Significant dilution occurs once the share price exceeds the FortescueSubscription Option price ($0.051), indicating Fortescue's optionssignificantly impact the dilution scenarios above this share price.

Summary of Key Impacts:

• Fortescue currently holds ~39.42% of HyTerra shares post-transaction.
• Exercise of all Fortescue subscription options would raise additional funds (~AUD $16.4m) and increase Fortescue’s holding to ~49.40%.
• Dilution scenarios clearly indicate how option exercises, particularly Fortescue’s, impact diluted share prices significantly above $0.051.

Based on the analysis, the Below table lists future share price scenarios and the dilution impact from all exercisable options, including the +300M available to Fortescue at 5.1c. Highlighted in yellow are the risked and un-risked share price valuations from Hannam & Partners