No worries.
The way I read it (and it's not written clearly at all) is that it's an accounting issue. CRN is selling 4mt for US$150m (that's the US$37.5/t value) but they have to value the coal deliveries from 2027–2032 based on 400kt/year at market spot prices and 400kt/year at a fixed forward curve.
This then impacts how the revenue is recognized on the income statement and importantly and how quickly the contract liability (the US$150M) is drawn down which will have tax implications.
As an example, say the coal price is a nice round US$100/t (lets ignore the spot price and fixed forward curve price difference). They deliver 800kt to Stanwell which is counted as revenue of US$80m. So, in that year, the liability reduces to $150 - $80 = $70m. By the second year, there is no liability, and you now have taxable revenue.
In summary, it's not what CRN will get for that 400kt lots (which is 4mt / US$150m) but how it is treated accounting wise. It's not a great deal but it's needed for the short-term liquidity. Things will improve in 2027 as I've outlined above.
CRN Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)