RE:RE:RE:RE:RE:RE:RE:Will Rio act before Nov 28 ?At a high level, Financial Institutions would never lend the full 4bn - it would more than likely be a 70:30 or 60:40 split on debt to equity - based on 60:40 split WRN would need to need a debt facility of 2.4bn and 1.6bn equity (~8 times current market cap or the mother of all dilutions).
On a realistic level.... during construction the interest payments would be rolled up into the overall debt, so let's say 10% interest on the initial 2.4bn is right and 4 years construction - that would be the equivalent of another ~1bn interest accrued during construction plus a 10% contingency on overall debt total incl interest roll up ~350m.
Reality.... we need 6.25bn to adhere to a 60:40 debt to equity split 3.75bn debt and 2.5bn equity (~12 times out current market cap) and that's just to get us in a position to produce.
In short Clarke, you are spot on, we need to sell and given costs involved we need someone with incredibly deep pockets. We just need to avoid getting our pants pulled down on sale price - if an offer of 600m+ (~3 times out current market cap) came in I would back it. Afterall, a bird in the hand is worth 2 in the bush!