Frontier Energy (FHE) investor relations material

Equity raising and funding structure

• Raising A$110 million via placement of 550 million new shares at A$0.20 each, a 23.1% discount to last close, to fully fund Stage One of the Waroona Renewable Energy Project.

• Placement is conditional on shareholder approval and securing senior debt commitments; directors will participate with A$3.3 million subject to approval.

• Total funding for Stage One includes A$110 million equity, A$250 million senior debt, and A$3.8 million existing cash, totaling A$371.7 million.

• Pro-forma market capitalization post-raise is A$223 million, with A$106 million cash and A$250 million debt.

• Key contracts for EPC, BESS, PV modules, and substation are advanced, with fixed-price terms and major long-lead items already ordered.

Project overview and market positioning

• Waroona project is WA’s most advanced, fully permitted hybrid renewable facility: 132MW solar and 81.5MW (6.9hr) battery, 120km south of Perth.

• Stage One is development-ready, with all major approvals, grid connection, and revenue certainty through state and federal mechanisms.

• Project is located on 830ha of freehold land, adjacent to major infrastructure and energy consumers, enabling rapid expansion.

• Multi-stage growth strategy with Stage Two (80MW BESS, 132MW solar) and further expansion potential on surplus land.

• Only pure-play ASX-listed WA renewable developer, targeting sector EV/EBITDA multiples (~22x) seen in recent transactions.

Revenue model and financial outlook

• Multiple revenue streams: reserve capacity payments, energy sales (battery and excess solar), and by-products (LGC, FCESS).

• Reserve Capacity Mechanism (RCM) provides A$32m p.a. (CPI-indexed) until 2032, underpinned by state government.

• Capacity Investment Scheme (CIS) underwrites minimum revenue until 2042, with federal top-up if revenue falls below floor.

• Average annual revenue forecast at A$72.5m and EBITDA at A$62.5m (86% margin) from commissioning to 2032; IRR post-tax 20%, payback 6 years.

• Debt servicing estimated at A$22.5m p.a.; reserve capacity alone covers debt and opex.