Place your bets ladies and gentlemen. Mine is on red (ant) that they will resign but it's possible that there won't be an announcement until a couple of weeks after the expiry date as has happened in the past.
So, what do we read between the lines whether they do or don't? My take on it would be:
If they do resign it would be only for another 3 month period which will also take us to the expiry period of the EPC contract. G.V. will have said, "Mr Meridian, we're just putting the finishing touches to the other 6Mtpa so hang in there for another couple of months and we can put the entire capacity to bed in one hit by June 30th". Everyone's happy!
If they don't resign it could send a message along the lines of: "Forget it Greg, we gave you another 3 months like you asked and still you have not been able to sell the other 6Mtpa. We can't wait any longer so we're outta here, 3 years is enough! You told us and the market that you were confident in signing up credit worthy customers by the end of last year or early 2018 and you're still sitting on blank sheets of paper. As far as we're concerned, April is the start of mid year, early has been and gone."
Whatever Meridian decide to do, it will deliver a very strong message I believe as to where we stand regarding finalizing of offtake agreements. Let's hope it's the message we all want.
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