Ann: Further US$20M debt reduction to the Euroclear Bond, page-15

agree, the customer is securing 600,000 tonnes over the next 12 months. they are paying upfront $100 per tonne and this where i suspect the reduction of the prepayment would be $100 per tonne for each shipment made. the actual sale price would still based on API4 Index price as stated in the original announcement.

for example, if the API4 Index is US$300/t for a shipment and they ship 80,000t.

TER would invoice the client US$24,000,000 (80,000 * 300), deducting US$8,000,000 of prepayment (80,000 * 100), balance to be paid in cash US$16,000,000.

Accounting
Debit Cash $16,000,000
Debit Prepayment $8,000,000
Credit Revenue $24,000,000