New Website, page-62

Abishai, i hear you on this point. The first we had mention of debt servicing etc not been part of capex was the 11/18 KfW mandate announcement. I dont imagine the revised or updated optimised plan has taken them into account either.

The 2017 DFS allowed 5% or $41 mill for contingencies. We now have projected savings of $ 29 mill. Rather than reducing CAPEX they say thats added to contingencies. Contingencies are now $70 mill.

The likelyhood is that the refinery will be constructed in parts in Germany and "mechano like" assembled at Darwin. SMS are to provide a fixed price tender with construction guarantees. Is there room in such a contract for contingencies. Appart from "force majeure" events i would say TNG lawyers would or should be bolting SMS down to the last aussie cent. I guess theres potential for conflict here.

Now lets add in NAIF contribution. Some say $50 mill others $90 mill. Apparently now the rules allow NAIF contribution to go into the general finance pool rather than applied to a specific component of the project.

if we take the bottom projected NAIF figure of $50 mill and the combined contingenies allocation of $70 mill we are at $130 mill and potentially as high as $160 mill with the higher figure. Thats real $$$$.

I would feel very let down if KfW with all its connections and the massive returns back to the German economy couldnt get every cent of their mandate objectives. The 8% EPCM allocation, coupled with the internal construction returns for the refinery plus the $222 mill allocated for the pigment plant to be constructed by Ti-Cons plus interest and no doubt an eye on future royalties etc back to SMS should provide all the incentive for those boys to sort every last cent of the mandate figure. Otherwise they will have failed in my eyes.

I agree we have to wait for final figures and that appears to be 7 months away. Rats another time line but one controlled by SMS so lets rely on it.

If TNG has to raise $270 mill equity debt by way of issue gazzillions of shares then the whole process of DD , SMS, Ti Cons and KfW is a failure in my mind.

TNG has raised a tonne of equity with $20 mill in the bank as a result and a share register that is blown out 30% in the last 15 months. Thats their quota is the message from the pukeko swamp. Raise the rest by debt funding.