General Discussion, page-1524

To recap exactly what GL said in that last 2 minutes of the presentation.

https://www.youtube.com/watch?v=JF9hxIyEWw

From 14:50 on:

“I’ve mentioned some of our off takes and this is where we are currently selling (refers off take slide).


"The lenders have indicated that they would like about 85% of our product tied up with off take. We are currently sitting at about 53%”

“We have a non-binding agreement still with the GE at the moment which we hope will turn in to a binding agreement shortly that will take us up to about 63% of our 85% that we need for the financiers and as I said before, we are looking to diversify our off-take our sales contracts into those jurisdictions that provide us both with a diversity in geographical locations, diversity and lending lending opportunities, but also diversity from in terms of credit risk from individual customers. We are in very strong and lengthy and advanced discussions with a number of other groups in Japan and Europe and the US and hopefully in the next six months we can make some great announcements about all of that”

“I should just touch on the equity side of things as well. Our plan is to look at this off-take locked away get the debt stack locked away and then we can clearly identify how much equity we need to raise. We are working with most of the off-takers as well for strategic equity input which we’ve announced we announced a non-binding arrangement with Hyundai which we are working through. There’s also non-binding arrangements going on with other groups who would all be household names which I hope we can announce by first-quarter next year and as Graham alluded to Mrs Reinhardt graciously injected funds up to 10% about equity last year and we would hope that once the debt stack is locked away, we can bring in some strategics in the likes of Hyundai and others alongside Hancock, which reduces the volume of equity that we need to go out and raise in the market. Will be looking for somewhere in the order about our market cap, so you can understand the challenge that we are facing”

On re looking at this closely he is definitely not saying that the “market cap” ($500M amount) is what they are planning to raise in the market.

The $500M is the approximate amount that still needs to be raised in total depending on the final "debt stack"

What will go to market will be the approximate $500M less GR (10%?), less “Hyandai and others” etc - so this $500M will be reduced significantly.

Not quite as dire as @2.2B shares been out there for the shorters to feast back on at some point of time when equity is raised.

Also, plenty of good announcements to come before the raise that could and should positively influence the SP.

So my view remains that I suspect the shorters will need to buy back before the equity raise, and chances are that they won't just get them handed to them on a plate on a very low CR.

Of course though if the macro goes against us...that won't help things....but that seems to be looking less likely over the next 6 months.