Resuming coverage post raise: Onward to build (By GMP)

Mine build equity funding largely in place Highfield has raised A$101m, issuing 56m shares at A$1.80/sh to fund construction at the Muga potash project in Spain. Pre-production capex is US$256m, plus GMPe US$20m in working capital, US$40m in VAT receivables, and ~US$10m in expected finance costs, for a total requirement of ~US$326m. Project debt funding of ~60% plus facilities for working capital and VAT should enable 65% gearing, providing US$212m of debt. With cash of ~US$95m, this only leaves a shortfall of ~US$16m, with a variety of options open including a cost over-run facility.

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