Ann: Finniss Restart Study and Operations Update, page-10

This is the last remaining parting gift from the SB/SL management structure. They contracted in crushing services by signing a 10-year contract with Mineral Resources CSI division. This reduced the capital cost for Core of implementing the Finniss project but also increased the operating costs for the crushing element of the projects operation. While the exact T&C's of the CSI contract haven't been provided, it appears to be a take services or pay type contract with reduced rates if there was no activity onsite. MinRes presumably structured the contract so that they recovered the capital cost of the plant and made a good margin on the project (MinRes's services division has good profit margins).

It would appear part of ongoing costs Core were making related to payments to MinRes under this contract. This is part of why costs were higher than you would expect for a C&M situation.

Core created an onerous provisions liability within its balance sheet when the shut down decision was made but have been quiet around exactly what contract is causing this onerous provision. From this announcement its clear that the onerous provisions liability related to its agreement with CSI.

The $19.5 million contract is a combined break-fee and buy-out of the crushing plant that is on-site on an as-is, where-is basis. This ends the 10-year contract signed in 2022.