Ann: DEL Enters Landmark Collaboration Agreement with Brickworks, page-85

Betshares999, your analysis is incorrect.

The YVW contract is a Design & Construct contract (D&C) only. DEL will have a margin within the $45m construction value. It will be a fixed price, lump sum contract. If it is delivered on time and on budget then I would expect DEL to bank that margin (note it is good that the procurement is not part of the contract) - so this is not a full traditional EPC contract. However if DEL has mispriced or mismanage the risk of delivery then that margin could be evaporated. Do you back management that they can delivery this on time and on budget? In addition to the $45m they have a 2 year O&M contract with a fixed price arrangement (c.$7m over 2 years) and an option for Digestate management. This infrastructure IS NOT owned by DEL therefore DEL does not make an IRR on this project.