20 15 ANNUAL REPORT

CAPITAL MANAGEMENT AND BALANCE SHEET COMMENTARY
Cash on hand at 30 June 2015 was $0.7 million which is $8.4 million less than the 30 June 2014 balance of $9.1 million.
Total interest bearing liabilities at 30 June 2015 were $137.9 million (US$106.0 million). This represents an increase of $33.7
million relative to the balance at 30 June 2014 ($104.2 million; US$102.7 million). The increase of $33.7 million comprises
cash ($3.9 million) and non-cash items ($29.8 million) which are explained in detail below. The movement in the amount
outstanding is the US$7 million new working capital facility issued by Noble International Pte Ltd (“Noble”) and the
repayment of US$3.7 million.
Cash Items
i. Additional funding of US$7 million provided by Noble through an additional working capital facility. The agreement
was entered on 6 February 2015 and the facility bears an annual interest rate of LIBOR + 10.5%. This was primarily
utilised to fund the Group’s BNU mine development expenditure along with financing repayments due on the
Group’s finance facilities.
ii. Repayment of US$3.7 million to Noble under the Fuel Exclusivity Agreement Facility.
Non-Cash Items
i. Unrealised foreign exchange losses of $25.0 million. This unrealised loss has come about as Australian Accounting
Standards requires the Company to revalue its foreign currency loans held with Noble and OCP Asia Limited
(“OCP”) to AUD equivalent at each reporting date.
ii. Amortisation interest rate expense on OCP Amortising Notes Facility and interest expense on convertible notes of
$5.9 million. This is an accounting, non-cash adjustment. The principal outstanding year on year has not changed
from the amortising notes of US$55 million and convertible notes of US$10 million.
During the year the Company’s principal financiers, Noble International Pte Ltd (“Noble”) and OCP Asia Limited (“OCP
Asia”) continued to demonstrate their commitment to Guildford Coal.
Facilities held with Noble – Noble’s deferral of principal repayments on its facilities has allowed the Company to align the
principal repayments with the BNU mine being in commercial production. This ensures that the Company can focus its
working capital to BNU Mine development activities, which ultimately improves shareholders returns in the long run.
i. Working capital facility: The Company agreed with Noble to defer the due date for the principle repayment and
facility interest payments to 30 September 2015.
ii. Additional working capital facility: On 6 February 2015, the Company entered into an additional working capital
facility agreement for US$7,000,000 which was fully drawn down. The facility bore an annual interest rate of LIBOR
+ 10.5%. The Company has agreed with Noble to extend the due date for the principle repayment and facility
interest payments to 30 September 2015.
iii. Debt facility: Effective 31 December 2014, the Company agreed with Noble to revise principal repayment to
US$2,222,222. The Company agreed with Noble to extend the due date for principle repayment and facility interest
payments to 30 September 2015.
iv. Additional debt facility: Effective 31 December 2014, the Company agreed with Noble to revise principal repayment
to US$3,111,111. The Company has agreed with Noble to extend the due date for principle repayment and facility
interest payments to 30 September 2015.
Between 15 August 2015 (principal and interest due date) and 29 September 2015 (date formal approval of deferral
received) there were no payment demands issued by Noble.
Facilities held with OCP Asia – OCP Asia’s deferral of principal repayments on its facilities has allowed the Company to
align the principal repayments with the BNU mine being in commercial production. This ensures that the Company can
focus its working capital on BNU mine development activities, ultimately improving shareholders returns in the long term.
i. Convertible notes: Prior to year-end, the Company was in negotiations with OCP Asia to defer the convertible note
maturity date and interest payments which became due on 8 July 2015. Following successful negotiations with
OCP Asia, on 22 July 2015 the Company submitted a formal waiver request for note holder’s formal approval of the
deferral request. This was subsequently formally approved by the note holders on 21 August 2015 on the following
terms:
a. Convertible note maturity date extended to 8 December 2015 (from 8 July 2015);
b. Payment of accrued interest which was due 8 July 2015 deferred to the earlier of 30 September 2015 or the
date of completion of any future capital raising; and
c. Adjustments to Convertible Notes and Amortising Notes detachable warrants previously issued by the
Company to OCP Asia subject to shareholders’ approval. (Refer to Events Subsequent to Reporting Date for
proposed changes to the convertible notes and warrants.)
GUILDFORD COAL ANNUAL REPORT
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