Sembehun Project Feasibility and Market Dynamics slide image

Sembehun Project Feasibility and Market Dynamics

Appendix D: Balance Sheet & Rehabilitation Support Sierra Rutile Limited Sierra Rutile has a strong balance sheet and sufficient liquidity to maximise the value of its existing Area 1 mining operations and continue to progress and invest in its flagship development project, Sembehun. Pro-forma Balance Sheet US$m Cash and cash equivalents Rehabilitation Trust deposit/ asset Trade receivables Inventories Well Capitalised with Rehabilitation Support Year ended 31 December 2021 Iluka has ensured that Sierra Rutile is established with a robust balance sheet and appropriate capital structure to implement strategies to maximise value for shareholders. 9.4 0.7 43.4 Sierra Rutile has a robust financial position from implementation of the Demerger, with a positive cash balance of $20.7m (at 31 May 2022) and no debt. 40.5 Total current assets 94.0 Rehabilitation Trust deposit/ asset 44.3 PPE & Other 27.0 Total non-current assets Total assets 71.3 165.3 22.8 Trade and other payables Borrowings Other Total current liabilities Non-current liabilities Total non-current liabilities Total liabilities Net assets Note: Please refer to Section 3.24 of the Demerger Booklet for more information. 8.1 30.8 53.9 53.9 84.7 80.6 In relation to existing rehabilitation obligations, lluka will establish a US$45 million rehabilitation trust cash funded on a one-off basis, to support Sierra Rutile's estimated rehabilitation obligations as at 31 December 2021. The trust deed for the rehabilitation trust will specify the mechanism by which Sierra Rutile can draw down on the trust funds for rehabilitation purposes. 33
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