@bazza d2...having read the relevant section from the FML qtrly...

@bazza d2...having read the relevant section from the FML qtrly activity report dated 29/10/2015 regarding the power take or pay contract transfer (extract below)...it is clear that the contractual obligation on Alinta to transfer the power contract back, if need by FML, expires at the end of 3 years, i.e. sometime during 3Q 2018. Unless they agree an extension, then FML needs to trigger the clause before then, otherwise it expires and FML then risks not having the requisite power to restart the TMH mill at later date...a risk they recognised at the time, and why they entered into the agreement with Alinta.

Given Shandong's ties to the Chinese Gov't as an SOE, perhaps the agreement timeline was made to align with the long speculated re-valuation of gold by the Chinese Gov't via the Shanghai Gold Exchange. I doubt that FML's Shandong-appointed board members would have made the decision in a vacuum.

My speculation is that FML will restart production this year, likely no later than 3Q 2018, which if turns out to be the case, means we should start to see related announcements from FML start to flow either late this quarter/early next. Anyway, time will tell...


Alinta Power Take or Pay Contract Transferred
During the Quarter, the Company eliminated one of the most significant ongoing legacy liabilities, the “take or pay” contract with Alinta for electricity to the Three Mile Hill plant. Previously, the Company had been forced to pay for electricity that wasn’t being used because the cost to cease the supply was onerous and there was a significant risk that Focus could face a long wait to secure a contracted power supply when Three Mile Hill restarts. By entering an agreement with a third party, Focus has been able to pass on the power supply and associated costs as well as receiving $200,000 consideration and securing a commitment from the third party that they will apply to transfer the electricity supply back if it is needed by Focus in the next three years. The elimination of this expense will reduce Focus’ expenditure by around $750,000 per annum.