Ann: Lake Johnston Project Update, page-47

I hear you, CW, however, my point around C&M wasn't meant to be viewed in the way you seem to have interpreted it. My reply was framed in response to your question around why not simply buy the whole company instead of just a single asset.

Most, if not all, purchasers of corporate assets (projects) will purchase them on a FA basis, not TA. In doing so they will have to be prepared to wear the C&M costs until the project can eventually reopen. That's precisely what happened when LJ & BS were purchased by POS 9-9½ years ago (i.e late-2014 and earrly-2015, respectively).And those projects are still not producing. From a Ni perspective they are very marginal swing assets that require a sustained high NP in order to be commetcially viable. That's why they have sat on C&M for so long and are more likely than not to continue to do so. (The hurdle for Windarra is even higher.)

Whether this current run in the NP lasts is an open question and is by no means a forgone certainty of a new secular, or even cyclical, bull market.