Frontier Energy Ltd's Funding Strategy Update

Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) is pursuing non-dilutive funding solutions for the Stage One development of its Waroona Renewable Energy Project. The company has initiated discussions with various counterparties and is on track to deliver an updated Definitive Feasibility Study (DFS) in Q4 CY2024, which is crucial for advancing the debt process.

Executive Commentary on Funding Strategy

CEO Adam Kiley emphasized the company's priority to secure non-dilutive funding for the Waroona Project development. He highlighted the potential benefits of alternative financing options, such as flexibility and leverage, compared to the original strategy. Kiley also mentioned the company's commitment to progressing these options and providing updates to shareholders as discussions progress.

Summary of Funding Strategy and Outlook

Frontier Energy Ltd is actively pursuing multiple non-dilutive funding options, including bonds, equipment supplier financing, and the Federal Government's Capacity Investment Scheme (CIS). The company aims to preserve exposure to rising energy prices and leverage the flexibility offered by bonds and equipment supplier financing. The upcoming updated DFS is expected to demonstrate key capital cost reductions, further supporting the funding strategy. Additionally, the CIS presents a significant potential alternative funding solution, guaranteeing revenue support for renewable-energy-supplied battery projects for up to 15 years. Frontier Energy's commitment to securing non-dilutive funding reflects its ambition to advance the Waroona Project and contribute to Australia's renewable energy targets.