Frontier Energy Limited · ASX:FHE
Frontier Energy — Investor Presentation (August 2024)
28 slides from Frontier Energy's investor presentation, Aug 28, 2024
Slide 1: A$40 million capital raising presentation
For personal use only A$40 million capital raising presentation ASX: FHE | OTCQB: FRHYF | August 2024 Not for release to US wire services or distribution in the United States
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE AND DISCLAIMER This presentation is dated 28 August 2024 and has been prepared by Frontier Energy Limited (the “Company” or “Frontier”) in relation to a proposed placement of fully paid ordinary shares ("New Shares") in the Company to certain institutional and professiona
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) PAST PERFORMANCE Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. The Company does not guarantee any particular rate of return or the performance of th
Slide 4: Disclaimer (cont.)
Disclaimer (cont.) NO LIABILITY/SUMMARY INFORMATION Frontier has prepared this presentation in good faith based on information available to it at the time of preparation. For personal use only Neither Frontier, nor any of its advisers or any of their respective affiliates, related bodies corporate,
Slide 5: Overview
Overview For personal use only Contents 1 Capital Raising: Placement to Support Stage One 2 Debt Financing Summary: Infradebt mandated to provide senior debt 3 Project Update A Key Risks B International Offer Restrictions Renewable energy solutions for Western Australia ASX:FHE / OTCQB: FRHYF | 5
Slide 6: Executive Summary
Executive Summary Frontier announces a A$40 million equity raising to accelerate early works, ordering of critical For personal use only long lead items and allow the Company to finalise debt financing and strategic initiatives 1 Capital Raising 2 Project Funding 3 Project Update $40 million capital
Slide 7: Capital Raising: Key investment highlights
1 Capital Raising: Key investment highlights • Frontier’s Waroona Project in Western Australia is nearing FID and will become a key part of the State’s energy transition given its advanced status, major expansion potential and the urgent requirement for renewable energy solutions in the State For pe
Slide 8: Capital Raising: Equity Raising Summary
1 Capital Raising: Equity Raising Summary For personal use only • Frontier is conducting the Offer to raise up to ~A$40 million via the issue of approximately: • 67.0 million fully paid ordinary shares (“New Shares”) pursuant to the Company’s existing placement capacity under ASX Listing Rule 7.1 (“
Slide 9: Capital Raising: Sources and Uses
1 Capital Raising: Sources and Uses Proceeds from the capital raising to provide sufficient liquidity runway to move ahead on long lead items for Stage One of the Waroona Project and advance debt financing and strategic initiatives For personal use only Sources of Funds A$m % Cash (as at 30 June 202
Slide 10: Capital Raising: Indicative Equity Raising Timetable
1 Capital Raising: Indicative Equity Raising Timetable1 For personal use only Trading halt lifted and announcement of completion of Placement Wednesday, 28 August 2024 Settlement of New Shares issued under Tranche 1 of the Placement Monday, 2 September 2024 Allotment, quotation and trading of New Sh
Slide 11: Debt Financing Summary: Process update
2 Debt Financing Summary: Process update Debt financing of up to $215 million for the development of Stage One of the Waroona Project For personal use only Frontier has signed a senior debt mandate with Infradebt to Debt Financing Process Update provide up to $215 million debt financing for Stage On
Slide 12: Project Update: Frontier's path to production
3 Project Update: Frontier’s path to production Stage One of the Waroona Project is advancing towards FID For personal use only Next step is a $40 million Major forecasted energy Debt financing and Future expansion studies to Capital Raising to move deficit in WA to provide Strategic Partnership sho
Slide 13: Project Update: Stage One returns
3 Project Update: Stage One returns DFS outlines long term sustainable profitability with upside For personal use only DFS – Key outputs Units DFS DFS outlines the pathway to sustained production Life of operation Years 30 • 120MW Solar / 80MW (4 hr / 320MWhr) battery (dc coupled) Energy Production
Slide 14: Project Update: Stage One only the beginning
3 Project Update: Stage One only the beginning Growing energy deficits shows requirement for major Frontier expansion For personal use only • AMEO’s 2024 ESOO report highlighted 391MW of new capacity is required in the 2027-28 capacity year increasing to 2,880MW by 2033-34 • Demand forecast to incre
Slide 15: Why is the WEM different from the NEM?
3 Why is the WEM different from the NEM? Reserve Capacity underpins development Reserve Capacity Mechanism (RCM) Reserve Capacity Payment1 For personal use only • RCM is unique to WA, not available in the Eastern States (NEM) 330,000 • Trade-off for lower maximum energy price in WA compared to NEM p
Slide 16: Energy transition in WA is already seeing higher energy prices
3 Energy transition in WA is already seeing higher energy prices What is the energy transition? Monthly WA Wholesale Electricity Price4 For personal use only • The change in the way energy is supplied and consumed as we move towards net zero (decarbonisation) 220 Electricity Prices in WA in 2023 • 2
Slide 17: Accessing existing energy network connections is a major obstacle
Accessing existing energy network connections 3 is a major obstacle to the energy transition Energy Networks were built for carbon emitting power stations not renewables For personal use only • Areas with existing energy networks are typically surrounded by competing industries or urban areas • To b
Slide 18: Board & Management Team
Board & Management Team For personal use only Governance and Investor Relations Non-Executive Executive Chief Executive Chief Operating Chief Financial Non-Executive Non-Executive Executive Team Chair Director Officer Officer Officer Director Director Chairman Mark McGowan Grant Davey Adam Kiley War
Slide 19: Right place, time and strategy for renewable energy production now
Right place, time and strategy for renewable energy production now For personal use only Highly positive Stage One DFS • 120MW solar / 80MW (4 hr) battery Up to $215m Debt financing with Infradebt Major organic growth potential to +1GW (based on grid connections) Management Retail 12% 25% Institutio
Slide 20: Appendix A: Key Risks
Appendix A Key Risks For personal use only ASX:FHE / OTCQB: FRHYF | 20
Slide 21: Key Risks
Key Risks Risk Factor Description For personal use only Conditions for Stage The progress of Stage One is contingent upon several critical conditions, including the successful completion of Infradebt project financing, and One to progress obtaining final credit approvals. Failure to secure these app
Slide 22: Key Risks (cont.)
Key Risks (cont.) Risk Factor Description The Company’s prospects are highly reliant on government policies for Australia’s renewable energy industry such as the Reserve Capacity For personal use only Mechanism which is unique to WA. Those polices are uncertain and any change in policy may substanti
Slide 23: Key Risks (cont.)
Key Risks (cont.) Risk Factor Description For personal use only Litigation and dispute The Company may, from time to time, be the subject of complaints, litigation, inquiries or audits initiated by third parties. If the Company were risks found to be liable under any such claims, this could have a m
Slide 24: Key Risks (cont.)
Key Risks (cont.) Risk Factor Description For personal use only The energy industry continues to evolve as technology develops. Changes to technology can change the manner, scale and location in which Technological energy is produced and sold and the extent to which it is consumed. Such changes may
Slide 25: Appendix B: International Offer Restrictions
Appendix B International Offer Restrictions Hong Kong, New Zealand, Singapore, United Kingdom For personal use only ASX:FHE / OTCQB: FRHYF | 25
Slide 26: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 27: International Offer Restrictions: United Kingdom
International Offer Restrictions United Kingdom For personal use only Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Servi
Slide 28: For more information contact
For personal use only For more information contact Adam Kiley CEO +61 8 9200 3428 akiley@frontierhe.com ASX:FHE frontierhe.com ASX: FHE OTCQB: FRHYF frontierhe.com ASX:FHE / OTCQB: FRHYF | 28
Frontier Energy — Investor Presentation (August 2024) on 6ix