A40 price action, page-359

in the last released financials, from the merger time, they had recorded the difference in offtake agreement price against the market price for spod at time of merger as an asset. i assume they looked at quantity of spod under the offtake agrement (contracted time frame for agreed price) x the favourable variance in price... they booked this as an asset (assume $16m at the time)... This has now been wiped off again, as the offtake is back at market value (effectively).

It is completely all book entry... last time showing as revenue and an asset, this time an expense and wiped the asset.

"A contract asset was recognised in relation to an offtake agreement held by Alliance at the date of acquisition (see Note 3 of the ASX 31 December 2018 Financial Statements) relating to the difference between the fixed offtake contract price and the market reference for spodumene concentrate at the date of the merger. As a result of the restructure of the offtake agreement post acquisition to a floating market price, the value of contract asset has been written off. A$16.46 million write off expense was recognised during 2Q FY2019 in relation to restructuring of the Company’s spodumene offtake agreement (2Q FY2018: Nil). "