Assuming the legal terms are as written in the announcement, MLX has adopted an interesting interpretation:
"three-month delivery quoted price for copper on the London Metals Exchange,converted at the RBA exchange rate, has averaged at least A$4.20/lb over any continuous six-month period prior to 16 January 2021"
On one hand, the trigger is when the 3-month LME futures stays above A$4.20/lb for a continuous period of 6 months. This condition has not yet been met (red box below)
On the other hand, MLX is arguing the trigger is when the average of the past 6 months hits A$4.20/lb or more. Condition met on 11 Dec based on my calcs.
Which interpretation is correct? Let the legal eagles fight this out. Perhaps an out-of-court settlement will be reached.
In any case, MLX was never banking on this payment for a rerate.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)