Hi Chris,Going forward it is better to think of the JV (KNPL) as...

Hi Chris,

Going forward it is better to think of the JV (KNPL) as a separate entity, one that ARL owns 50% of.

- The JV owns the off-take.
- The JV is responsible for all costs and revenue associated with the business.
- The JV's customer base has already been defined as 75% Sumitomo/Mitsubishi (as their own JV).
- There is no declaration that this 75% allocated off-take has preferential pricing/discounted, thus it will be market price at the time.
- ARL retain the rights to sell the other 25% at market price to other customers although Sumitomo/Mitsubishi may have First Right Of Refusal. Regardless it is at market price.
- The JV will be a going concern in its own right and thus the shareholders of the JV (ARL 50% and Sumitomo/Mitsubishi 50%) will receive all associated profits accordingly.

Ultimately ARL has financial interest in 50% of the off-take regardless of who the customer is!