They moved the responsibility for funding the rail and port to the Government and SDL would maintain the responsibility for funding the mine development only.
This ensured that SDL did not take on any of this massive debt and added expense and this actually improved the overall prospects of the company.
This was a great move by SDL as the company was getting bogged down with attracting financial vendors for such a massive funding liability.
It was thought it would be easier for a country to secure major infrastructure funding that it would be for an independent Australian mining company. SDL was still involved in organising the funding but the payment of the debt was not in SDL's books.
This meant that country would in effect rent the rail and port back to SDL per usage.
This was also a good move because it did not materially impact the bottom line or profitability of the project.
That is because instead of paying back a massive debt, the expense for rail and infrastructure charged by the counties would be recognised in the operating statements.
ANS Price at posting:
1.7¢ Sentiment: None Disclosure: Not Held
