TMT 1.45% 35.0¢ technology metals australia limited

The big question.....financing, page-157

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    They may not have to come up with the pipeline capex themselves. Why wouldn't a 'yield vehicle' of some sort be set up to fund the pipeline with a, say, 10-15% return on capital. We simply pay the price of the gas delivered plus an acceptable return on the capital employed and the cost is therefore treated as an operating cost (tax deductible too). There is real appetite out there with an aging population for yield plays. Someone like Macquarie Bank would have jumped at something like that in the past. Of course the project would need to be largely derisked (i.e. at name plate production with a tied in V price) so trucking may need to be the option for a year or two?? Thoughts?
 
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