Ann: LTR: Liontown awards EPCM Contract to Lycopodium, page-8

The big difference between Lycopodium, Monadelpheous and Mondiumis

Lycopodium operate on a EPCM basis or operating as the OwnersEngineers therefore Lycopodium is operating for the Owner in this case Liontownand any dispute will therefore be between Liontown and the contractor inquestion.

Mondium and Monadelpheous operate on fixed price contracting wherethey need to protect their own contractual position therefore the dispute will arisein the name of Mondium or Monadelpheous and they operate at significantly tightermargins than a mine owner.

Due to the larger margins of Mine owners compared to mineconstructors, mine owners have deeper pockets to make ex gratia payments tosettle disputes regardless of who is at fault i.e. settle it just to avoid anissue whereas constructors need to hold their position firm and negotiate.