Ann: Primero awarded EPC contract for KCGM Growth Project, page-43

Forge acquired two power-station contracts from Citec with an astounding lack of due diligence. Those contracts caused their undoing. Primero worked on a power-station with Finland-based Wartsla, and a dispute with Wartsela caused them strife. Ignoring the coincidence of power stations, it is the provisions of contracts that did the damage. It was the provisions in the Roy Hill contract that did not restrict litigation to the jurisdiction of Australian courts that nearly cooked NWH's goose. The message is clear, get reasonable contract provisions, or simply walk away from doing business if one cannot.

Shared-risk contracts are one way to mitigate problems. The other is expertise. If one knows what one is doing, recognises the risks, then one can take digestible risks, and it is easier to do if the contracts are small. I have said more than once on this subforum that NRW had a valuable off-balance-sheet asset – the painful experience with Samsung.

It is a sad spirit of current times that whenever NWH signs a contract, folk focus on what the largest possible loss could be, and the SP moves south. The corollary of which is that if NWH signed no contracts, the SP would rise, and Jules is just too obtuse to recognise that “truth”.