The outcome of a reduced FA must relate to either (1) reduced disturbance footprint and rehabilitation liability as the FA standard calculator works off unit rates or (2) MRV have obtained current and binding quotes on the rehabilitation that are at a lesser rate than the standard FA calculator rates. There are limited other avenues available to DES under legislation.
If it is (1), then it likely either means;
(a) a review and reduction in total disturbance area in the Plan of Operations (PoOps) has been agreed (would need to examine the exact changes in regard to any current or future impact/s on operations and cash flow), or
(b) the PoOps has been revised with a reduced time period (e.g. 12 months instead of the maximum 5 years) with a related reduction in disturbance footprint.
Either way, good news for shareholders, and most importantly that once lodged operations can restart. As the lone ranger said, "High ho silver, away !"
MRV Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
