CORPORATES ISSUER COMMENT 8 March 2022 Contacts Maisam Hasnain, CFA +65.6398.8325 VP-Senior Analyst Anthony Prayugo +65.6398.8331 Associate Analyst Annalisa Di Chiara +852.3758.1537 Senior Vice President Ian Lewis +65.6311.2676 Associate Managing Director Golden Energy And Resources Ltd Completion of fundraising for planned acquisition is credit positive On 7 March, Singapore-listed Golden Energy And Resources Ltd' s (GEAR, B1 stable) Australian subsidiary, Stanmore Resources Limited announced that it had raised AUD656 million ($478 million) from a planned $506 million rights issue. This transaction is part of Stanmore's funding for its planned $1.3 billion Australian metallurgical coal mines acquisition. The rights issue, together with funds recently raised by GEAR to finance its subscription to Stanmore's rights issue, are credit positive for GEAR. Both will help ease the liquidity strain on GEAR to financially support Stanmore's planned acquisition, which is expected to close in the second quarter of 2022. In November 2021, Stanmore signed a definitive share purchase agreement with BHP Minerals Pty Ltd to acquire BHP's 80% effective interest in BHP Mitsui Coal Pty Ltd (BMC), a metallurgical coal mine operator in Queensland, Australia. GEAR had guaranteed up to $600 million on behalf of Stanmore for the acquisition. However, its contribution will now be limited to $300 million. This is because Stanmore's third-party debt and equity raised, along with its internal cash, will be sufficient to fund the remainder of the acquisition price. Exhibit 1 Stanmore's cash sources will be sufficient to cover the BMC acquisition cost Source of funds $ million Use of funds $ million Acquisition debt facility 625 Transaction consideration 1,200 Rights issue proceeds from GEAR 300 Estimated stamp duty and transaction costs 100 Rights issue proceeds from third parties* 206 Three-year revolving credit facilty 120 Internal cash 49 Total 1,300 Total 1,300 *Petra Capital Pty Ltd, an Australian institutional stockbroking firm, has fully underwritten Stanmore's $206 million rights issue proceeds to be raised from third parties. Stanmore raised $178 million from institutional investors on 7 March, and targets to raise an additional $28 million from retail investors by the end of March Sources: Stanmore stock exchange filings and Moody's Investors Service estimates GEAR is funding its subscription to Stanmore's rights issue with a $90 million tap issuance on its outstanding US dollar bonds on 3 March 2022, a $64 million share placement on 7 March 2022, dividends from its Indonesian thermal coal mining subsidiary PT Golden Energy Mines, and internal cash. As a result, we expect GEAR’s holding company liquidity will remain adequate through to March 2023 (see Exhibit 2).