roy hill, page-3

FGE share of Roy Hill is ~$800m over 21 months. This will require average working capital of ~$40m. As FGE has just written off $127m of working cap, has a self proclaimed 'challenging liquidity position' in December and requires an extra $50m from ANZ just to finish unprofitable contracts it is hard to see where this additional $40m of working cap will come from. Samsung won't be providing it and unlikely FGE sub-contractors will be prepared to offer favourable payment terms either. In balance sheet terms $40m working capital requirement equates to ~46 cps. DYOR