ERM Loan

ERM just released its half year accounts.
I went looking for references to EGO.
Below is an extract from the accounts.

Joewolf and Healyn - am I reading this correctly?

What I found interesting is the reference to the Top-up payment.
ERM confirms repayment of loan is due 31 August 2016.
It confirms Top-up payment required if EGO SP reaches $0.80.

What I found interesting, is that ERM has valued this contingent asset (ie its ability to get some financial benefit from the Top-up ) at $2,141,311 as at 31 Dec 2015.

So the closing SP of EGO at 31 Dec 2015 was 47.5c.
The directors of ERM signed this report today 25 Feb 2016, when EGO SP was 34c

So I am just curious as to how ERM can assert that the Top-up mechanism relating to the ERM loan (ERM calls it a "financial asset"), has a "fair value" of over $2m, when any benefit ERM hopes to get from the Top-up is based on EGO holding at 80c, when the current SP is way out of the money at only 34c?

Does ERM have better info than us?
Is it confident that the EGO SP will be at 80c at end of Aug 2016 (and there is a VWAP measure in there also)

Also those ERM accounts are audited.

Well I hope ERM is correct - I would love to see our EGO SP at 80c.

Yippee !