You have to view winning OPR contract in historical context. MMX had been trading above $3 - 3.5 for a year before, going as high as 6. They where in S&P200 companies and it was all about a large DSO orebody. Then came the GF meltdown and the recognition of a magnetite resource not DSO. Management could not put their hand up when they realised they could not do it alone.
As for the payout value for OPR, I presume that was written into the contract. Goverment cannot give private industry open ended contracts. This is a classic case, they have spent a fortune on this and it appears to be over designed, over engineered and aimed at their specific needs - big problem - they have not delivered an economic working model!! Why should the government pay for that. If they had delivered there would be no need for a payout - they would be building it.
post end of year scenario, page-39
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