reserves, page-61

I think I do know something about finance Mr Taylor.

No way on planet earth is anyone going to take on debt without a surefire revenue stream that can support the debt.

The sure fire revenue stream can be with a major entity with solid financials who agrees to a fixed payment. It could be a hedge, or an off-take doesn't matter but the sure fire revenue needs to correlate with the dent repayment. But before that, you need to know that whatever happens in your resource of cost structure, you know you can handle it. That is why debt can be toxic radiative poison if not handled properly.

Some debt is fine as you allude. If CDU is pulling out spare cash at the rate of half the loan per year, then no problem.

Its no problem because I assume the $100m will be employed somehow where $100m of infrastructure pulls in more than the interest on debt - in this case $7m - plus a chunck of principal payment. Usually this is through improved efficiencies, or getting upscale efficiencies or to market sooner (i.e. saving opportunity cost on the already spent $3-400M of capital) which SH should be valuing at 10-15%pa.

Anyway, the whole question is a beat up. The cash may have sped up the rail line etc, but it was a nice to have than a need to have.

Don't you think prudent not to take on risk in this environment? I suggest CDU are gambling on resource, which is why we love them because they are winning on that front, and not taking any chances on some random nutters in the financial world.