gearing and net equity, page-2

twende,

re net debt levels, i refer you to page 18 of presentation placed on ASX platform 29 August. This noted net debt pro forma 30 June 2008 after sale of Uranquinty / ecogen of $3.26 B. Since then we have had the sale of Tamar for $100m thus should be approx $3.16 B( pro forma 30/6/08). Note that this includes $304 m of construction debt as at 30/ 6. The construction debt will be higher than this now as they have continued to build Kwinana, Neerabup and Redbank.

As I have posted previously, I expect next asset sales will be Kwinana and Neerabup. I estimate that these have construction debt of approx $370m now and believe that they may sell for the $500-520m mark. if so this will allow for repayment of $370m construction debt and provide $130-150m for repayment of the BBPH facility of $116m, with a little left over to make some reduction on the BNB facility.

More importantly if they do manage a sale at around $500-520m for Kwinana / Neerabup combined, then their net debt levels will reduce to say $2.7-2.8 B level. This will have demonstrated some $1.3 b of debt reduction in a 6 month time frame and a profit on book values! It is not all bad but they need to just keep working potential buyers and chipping away.

The debt facilities after the repayment of the $116m BBPH facility are reasonably long tenure. The first repayment requirements being that 63% of the BNB facility is due to repaid 30/09/2009 with 37% due 31/10/2010. The large $2.7 b BBPF facility has variable matururities being 1.6B due 6/2011, 0.96B 6/2013 and $0.14 b (just l/c working cap) 6/09.

So I suspect even after sale of Kwinana and Neerabup we could see one or two more sales in first 6 months of 2009, but then facilities and balance sheet should be in good order and we can look towards distributions recommencing in 2010.