Diggers and Dealers Presentation

[John]

This is an Australian annual conference. Its a big conference....and def worth attending if you ever get the chance...
Presentation:
https://wcsecure.weblink.com.au/pdf/ARU/02975225.pdf

So there are some new slides:



This explains why ore to oxide is so important...and does it also show all our potential JV partners on the RHS?



This is also a new slide...showing the funding...and how much they still need to lock in. i like this slide. well presented. At the end of the presentation DC said the following:

"So we need 80% of our offtakes locked in for our debt terms and we need that 12 months or so after FID. We have twothirds of that locked in with binding agreements. We're using the remaining onethird to pull in the cornerstone equity and we expect to do that as part of the um the cornerstone equity."

I am unsure what the "we need that 12 months or so after FID" what does that mean?


Question - So what was missing from the presentation????
Answer - Talk of the JV?

Does that mean anything? hmmmmmm

 

[WideMouthFrog]

This is an Australian annual conference. Its a big conference....and def worth attending if you ever get the chance...
Presentation:
https://wcsecure.weblink.com.au/pdf/ARU/02975225.pdf

So there are some new slides:

View attachment 57

This explains why ore to oxide is so important...and does it also show all our potential JV partners on the RHS?

View attachment 58

This is also a new slide...showing the funding...and how much they still need to lock in. i like this slide. well presented. At the end of the presentation DC said the following:

"So we need 80% of our offtakes locked in for our debt terms and we need that 12 months or so after FID. We have twothirds of that locked in with binding agreements. We're using the remaining onethird to pull in the cornerstone equity and we expect to do that as part of the um the cornerstone equity."

I am unsure what the "we need that 12 months or so after FID" what does that mean?


Question - So what was missing from the presentation????
Answer - Talk of the JV?

Does that mean anything? hmmmmmm

Hey John, I heard that 12 months allows the offtake to be locked in after FID. The flexibility to start on construction.

Maybe it allows additional equity, or negotiation of terms. Think in terms of the recent German partners that are doing JV, their equity is not needed. But ARU have prioritised them as an offtaker due to their ability to bring Equity. That’s on top of the German government equity.

Ie just means they can get started on FID, draw down cash, rather than another capital raise and 3-4 months lost while they finalised.

That was actually something that was annoying me coming out of that last quarterly, that they really hadn’t locked that down, and knowing how slow contracts and lawyers work, this meant unnecessary delays.

 

[John]

Well this is massive news then!!?!?

I always understood that it was 80% needed to be lcoked in (was 85%)...and the rest was to be sold at spot prices.

@WideMouthFrog - i got my quote from DC from the transcript on the YouTube. Not the most reliable...but I found it hard to hear on the Youtube video.

I must admit...i'm still confused...