res since cds, page-4

Over the next few months, RES will secure project debt for the balance of the CHPP and shortly thereafter confirm that EKF has agreed to guarantee +50% of the cost.

By mid-year, lease and purchase agreements for mining equipment will be finalised at which point funding will be complete and construction will be in full swing with production on schedule for late 2015.

Many are expecting a reasonable rise in the SP once funding is complete. Until we hit production the SP will remain volatile so it's anyone's guess what happens between funding and production. Coal prices will play a significant role in RES's SP going forward so watch that space...

Once funding is complete, I would expect RES to launch a fairly aggressive PR campaign. It's worth noting that approximately 75% of RES shares are held by the Top 20 (excluding Blumont who would push it above 80%). I firmly believe that of the remaining shares held outside the Top 20, HC members would own a sizeable amount.