Under the deal with Inco/Vale, they were actually financing more like 98% of the capex. The deal was whatever the debt/equity ratio, Inco was to fund 100% of the debt component. The equity component was then based on the buy in (which was Inco 60% HRR 40%). So for HRR's 40%, Inco guaranteed HRR component (by way of loan - 80% of which was to be paid back out of future profits), but HRR had to initially fund 4.5% of the equity component up front as their share.
IB's example at the time went like this:
Agreed buy in percentage was Inco 60% / HRR 40%
IF: CAPEX: $1.4B and debt/equity funding was agreed at 70/30:
THEN:Of the HRR equity ($168M) required:
- Inco would fund 100% of debt component - $980M (70% of $1.4B)
- Equity split is 60/40: Inco to fund $252M and HRR $168M
- HRR required to fund 4.5% of the equity component upfront, so $19m (4.5% x $420m)
- Inco would then lend the remainder of HRR's equity share, $149m (to be repaid from share of profits).
So HRR, in reality, would have only raised $19m to retain 40% of the project, and would have incurred none of the project costs.
Of course you would need to account for the fact that HRR had to repay the $149m loan to Inco 9over the life of the project), so in reality HRR's share of the $1.4B capex, was $168M (being 12% overall of the capex).
@Jogoo
- Forums
- ASX - By Stock
- Ann: Japanese Consortium Update on Progress on KNP Goongarrie Hub
Under the deal with Inco/Vale, they were actually financing more...
- There are more pages in this discussion • 19 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ARL (ASX) to my watchlist
(20min delay)
|
|||||
Last
60.0¢ |
Change
-0.005(0.83%) |
Mkt cap ! $119.7M |
Open | High | Low | Value | Volume |
60.0¢ | 61.0¢ | 59.0¢ | $58.79K | 98.57K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 4988 | 59.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
60.0¢ | 500 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 4988 | 0.595 |
3 | 6617 | 0.590 |
4 | 21877 | 0.585 |
2 | 5220 | 0.580 |
1 | 1172 | 0.570 |
Price($) | Vol. | No. |
---|---|---|
0.600 | 500 | 1 |
0.605 | 9628 | 1 |
0.610 | 8537 | 2 |
0.615 | 18761 | 2 |
0.620 | 28001 | 2 |
Last trade - 16.10pm 03/06/2024 (20 minute delay) ? |
|
|||||
Last
59.8¢ |
  |
Change
-0.005 ( 0.42 %) |
|||
Open | High | Low | Volume | ||
59.5¢ | 60.5¢ | 59.0¢ | 27368 | ||
Last updated 15.46pm 03/06/2024 ? |
Featured News
ARL (ASX) Chart |