OZL Capex, page-3

I would hope that corporate memory is long and strong, and therefore that OZL does not take on debt, at least not at the parent company level.

OZL did not need to take on debt to complete C. I would hope that it has enough to cover the cash component of the AVB bid, bearing in mind that it quite likely will get nowhere near 100% acceptances.

Assuming this is the case, but that their is very little uncommitted cash/cashflow until C is completed late 2019, then I would suggest OZL has an opportunity to further optimise and study the Brazilian projects with limited borrowing at the AVB subsidiary level. If these are such great assets then surely bankers will be falling over themselves to fund them?

OZL was born out of the remnant of OXR, a company that went into the GFC with a seemingly modest debt and didn’t survive it.

Debt is a risk. I do not believe it is worth risking the entire corporate group merely to accelerate development of a relatively minor asset by at most probably a year. Once C is operating OZL has a lot of free cash flow again.

EL