Media Update, page-1762

I reached out to Ross recently and asked about the US$20m from the IC project due next quarter.

Didn't get a clear answer, but the revenue will be recognised in Q1 2020 ... with only conditions precedent to be satisfied before receiving the actual US$20m.

In a normal economic environment, the conditions precedent would be a very straightforward exercise... largely administrative.

However, I was not given any response to my specific query as to whether or not the US$20m payment is tied to the notice to proceed.

Logically thinking about this, the notice to proceed will only go ahead once the conditions precedents are met... what is involved in that process is obviously not known, but it is common that clauses exist within the contract for extraordinary events such as a GFC, war, hyperinflation or global pandemics. I've reviewed many contracts in my career... and unfortunately little attention is paid to these clauses, you'd be surprised how many corporations in Australia were caught out during the GFC on these.

Has anybody out there had any luck in finding out what will trigger the US$20m payment from the IC project?

The lack of response from Ross may have already answered my question, but I am hopeful that someone may be able to prove me wrong.