Media Updates, page-7859

Yes it is reliant on A2M, but my point is more that there are reasons pushing Synalit to be more conservative in forward forecasting that are independent of A2M sales/demand expectations. A moderate uplift in sales over that period will be much more beneficial to A2M than it is to Synlait, for various reasons, and it needs to factor in some of these other issues that are specific to its business and independent of A2M.

A2M guidance directly affects SML, but it does not go the other way to the same extent. Today's SP action with A2M & SM1 is a reflection of this too. A2M is under pressure to tightly control its inventory and production now, and can flexibly adapt its forecasts without having to commit to large volumes. SML on the other hand has to build in some baseline expectations and has very little option but to take whatever volume A2M requests. It is a lop-sided arrangement.