Can We Move On, page-184

Hi Suz,

Those rates are for commercial finance. Because of our tie up with SMS the company is dealing with KfW a German export credit agency to finance SMS’s component of the project, this was previously just the refinery but is now also the mine!  The export credit agency’s job is to increase a German exports like this, however the loans are usually short ie 5 years.

The company is also looking at NAIF funding for the infrastructure component, these loans are much longer.

Both of these loan types are concessional and typically very low interest ie 3-4%

With the change in scope for the Mt Peake mine from Australian EPCM to SMS, the SMS product guarantee being given and end of arrangements with Gresham I can see that things are moving in the back ground to make this deal with KfW happen.

The directors haven’t (and shouldn’t) comment on in progress commercial discussions but when questioned in person they appear very comfortable that things are progressing well.