NRW got another win today, page-52

Hi Pb,

Like you I have read and reread both the judgements and NRW announcements.

I think what we have is a disagreement on the payment of the progress payments and that there is a separate final wrap up stage where the variation from the contractual quantities will be addressed. This is due to occur within eighteen months of practical completion. The fact that Samsung have not signed off on practical completion will have to be resolved by the courts.

If I am correct the issue with the drill and blast was not so much that the work will not recoverable but whether it could be recovered as part of the progress claim. There is no way that the extent of drill and blast can be determined in advance and would always be subject to variation.

In terms of NRW accounts I suspect their auditors will only accept as revenue anything which has been agreed or adjudicated upon. That means there is nothing recognised for variations including drill and blast.

It could be a long wait.