KG
OZL is 100% NOT in default in any way...nor will it ever be. Banks about to renegotiate LT term facilities on 200bps over libor for 2-3 year terms dont foreclose or they would be stupid in this case. Admin risk whilst not zero has fallen from 10% to 5%. Just my view. PH is 95% complete thankfully.
The current $405m cash position + undrawn current facilities of $227m + Net OP Cash Flow $400-600m between now and end of FY2009 means the company will have $1-1.2 billion in cash access to cover all current debt service and repayment.
This may be $800m entering 2009 if the zinfex facility is repaid this year but maybe its rolled into the new mega facility too. I cant be sure of that though. Best to be conservative and say the company will have aprox $800m during FY2009 if facility rolled into one. Thats really great news.
Coverage ratios ranges are 4-8x till mid year CY2009, 10-15x FY09, 50-60x in FY10
EBIT: is tight this year and slightly negative, but in 2009 > $300m and FY10EBIT = 600m +
Sleep well people.This means NO RIGHTS ISSUE REQUIRED !!! Not even close really. Unless they call in the debt this year without sufficent notice to OZL and OZL will have a great legal case of unconscionable conduct and other legal argument too. and by the time to case makes it ot court, PH is up and running and CF positive.
Peace
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KGOZL is 100% NOT in default in any way...nor will it ever be....
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