FID, page-6

Hi Moyston,

You can always sell a deal its just a matter of price. Lets hope Lachlan is able to keep a goodly amount for us.

Its not surprising that the Russian Invasion and rising inflation and interest rates drove Equities markets into a massive risk -off period early this year with people exiting the markets in their droves to safer havens.

When folks providing equity capital get frightened. Debt providers who are zero risk tolerant go into hibernation.

I have assumed too much in the past thinking everyone understands graphs and charts but for those who do, the following bar chart is a pretty compelling story about Last Twelve Month (LMT) deal activity.

Shame Lachlan wasn't able to lock in the definitive offer of debt finance and associated hedging when the cu price was $4.90 before the bottom fell out of debt markets.


Where does that leave us.

If pure debt providers stay in hibernation and the market continues to value what HGO has without an FID at next to nothing the folks with cash can demand a lot more than a bit of interest to get the show on the road.

No wonder they say Cash is King.

Lets hope the time is being spent on achieving the least dilutive outcome.

A slice of something is I guess better than the whole of nothing.

I'm of course hoping for a very big slice.