Member Info for Mitriti

It's materially undervalued and likely will remain so until CLN clarity. That’s typically where rerates begin. If so, this could just be the start of the move into first gas. Happy to add here.

Gla!

Your point is spot on MrH. If these sells are indeed CLN-related, then clarity could actually be the turning point. The market can deal with a known overhang much better than an unknown one. We should find out soon 🤞

No brainer to hold Blakie🙂👍

The tide will turn, Blakie. CLN could realistically drop at any time now… let the market finally reprice this company properly!

Months? 😅 That makes no sense lol😂

FID is already done and the project is moving forward. The CLN restructure is the last piece of the puzzle. They won’t leave that hanging for months. More likely we see it any day now, this week or maybe next week.

Once that’s sorted the overhang disappears and we're going north.

Stoploss orders at 0 08 probably

Blueballs888😂😂

Agree. Congrats Gaz! Now let’s get the rest of the pieces moving.

“Significant procurement activity… is now underway.” Procurement underway usually means the pieces behind the scenes are already lining up. Feels like the CLN resolution isn’t far off now as MrH_m hinted earlier... 🤞👍

Honestly I’m not sure anyone here really cares what you think Blueroad...but good for you 👍

Wow Blue, really owning it now aren’t you… all for another tenth of a penny 😅😂😂

Pied, you’re framing this as if lenders expect repayment before the project even produces, which isn’t how these things are structured. In project finance the asset pays the debt, not the balance sheet beforehand. Waiting for production isn’t some outrageous favour to EME... it’s simply how lenders maximise their chances of being repaid. Forcing the issue early would likely destroy value for everyone involved, including the note holders themselves.

And stepping back for a moment, we’re talking about roughly a $10m loan tied to a gas development. In that context it really isn’t the existential problem you’re making it out to be.

That scenario assumes the 20% keeps running for years...But the restructuring is happening precisely to change that...

Typically you end up with lower interest, longer terms and repayment from project cashflow. On a ~$10m loan it doesn’t take much Mako cashflow to deal with it over time. And in the context of a producing gas project, $10m really isn’t a huge number.

If I had to put a number on it I'd say around 25% give or take. Enough for lenders to get repaid in a sensible timeframe if Mako performs, but not so high that it kills the equity story and the rerate. Remember the loan is only about $10m, so it doesn’t actually need a huge slice of cashflow to clear over time.

Somewhere in the 20–30% range would make the most sense to me.

That’s actually an important point. Based on the numbers mentioned by EME and Conrad, a 10–15 year repayment window sounds entirely realistic if the loan is structured around production cashflows. Which is also why I think the market might be overcomplicating what the CLN update will look like...

Just thinking out loud about what the CLN RNS will probably contain:

1) Extension of maturity

Almost certain in my view. Likely pushed out to first gas or X years after FID. Without production there’s no realistic repayment anyway, so time has to be part of the solution.

2) Lower / adjusted interest

The current rate simply can’t run for years. More likely something in the 8–12% range, possibly with some PIK element. Otherwise the balance just compounds too quickly.

3) Repayment from project cashflow

Probably the most logical structure. Something like a percentage of EME’s Mako distributionsuntil the loan is cleared. Very common in energy financing.

4) Cap on total repayment

Also wouldn’t surprise me. For example 2–3x the original loan value. That keeps lenders incentivised while leaving upside for equity.

5) Limited or no aggressive conversion

If heavy conversion was the plan the equity story would already be broken. More likely a cleaner restructure with maybe some warrants at most.

We’ll see soon enough, but most restructurings in this sector end up looking something along those lines.

Given the recent RNS commentary it also feels like we’re getting quite close to that update now indeed.

Agree GoBig but less of a gamble, more of a delayed rerate once the numbers become clear.

You’re assuming the licence never gets extended. History of gas projects suggests otherwise.

If Mako is producing, extensions are normally granted and financing is structured around the cashflow life of the field. That’s fairly standard in the industry.

Spot on MrH_m! That’s how these things normally work. Long-life asset, long repayment window.

Blue, doing a big placing before resolving the CLN would be the worst possible timing. Markets usually want the debt overhang cleared first. Once that’s done, the company has far more options and far better negotiatingpower. That’s why the restructuring is the key event here.

A little patience… it will become clearer soon enough.

Pied, your assumptions are where the argument starts to fall apart...The lenders don’t need to be “compassionate”. They just need to be rational.

Right now they have two realistic options:

Force the situation and try to realise value from a minority interest in a complex Indonesian gas project that they don’t operate.

or

Restructure the loan in a way that allows the project to move forward and increases the probability of getting their money back.

Most lenders choose option two. That’s just how project finance normally works.

Also the idea that the maths only works with a 50% haircut feels a bit exaggerated. Restructures rarely come down to a single blunt outcome. Extensions, revised interest, staged repayments, participation in upside… there are many ways to solve it.

And one key point often missed here:

Without Mako progressing, the note holders don’t get paid either. So their incentives are not as one-sided as you suggest.

We’ll see the structure soon enough.