Ann: Thunderbird Construction Over 75% Complete, page-24

They are using some of the contingency due to the $27m increase but not all of it, hence the available remaining contingency of $54m.

The total project budget has not been increased - it remains at $484m. All that has occurred is the $27m increase in costs/pre-production expenditure is being applied against some of the contingency provisions that made up part of the original $484m budget. After all, that is what cost overrun/contingency facilities are put into budgets for. I think they have done a pretty amazing job in this environment.

FYI - the budgeted $484m also includes provisions for commissioning and start-up costs.

I'm not sure I understand what you mean by "..even if they don't think they will use it the lenders will.."

If they do not require the full $484m (and based on the update from last week they are on track to come in at $430m if no further increases), I can't see how the "lender will use it"? All that would happen is KMS would have $54m less debt to repay out of future cashflow and be operating on a slightly more attractive debt-to-equity ratio because they have not needed to draw down the extra debt from Orion/NAIF.