This report does not constitute a rating action. MELBOURNE (S&P Global Ratings) Sept. 26, 2024-- Recycle and Resource Operations Pty Ltd. 's (Bingo) new A$100 million shareholder loan will provide crucial liquidity support as the company strives for cash flow breakeven over the next 12-18 months. Persisting weak residential construction volumes will constrain Bingo's (B-/Negative/--) earnings growth and free cash flow generation over the next 18 months. Accordingly, we forecast weaker fiscal 2025 (June year-end) free operating cash outflows of A$40 million-A$50 million (including one-off fines and taxes). The shareholder loan should comfortably fund these cash outflows. This gives the company time to benefit from a potential recovery in construction volumes in the subsequent 12 months, enabling it to reach
