Aecon Group Inc T.ARE

Financial implications

[Gabriel]

The mark to market accounting is such that 20% of the difference between the cost to complete PLUS penalties for being late on the Gordie Howe bridge and the projected payments per the contract was previously shown as a loss.

That difference has just been reduced by about 700m + 200m for penalties for a total of 900m. 20% of that is our share. So our financial statement should reflect approximately 180m received or to be received. These are not attached to milestones (like for Eglinton and Finch) so they should show immediately. 180m is 3$ per share.

The waived penalties are shown in the contract and equate to the cost of the infrastructure per month mainly cost of capital (5.7 B * 4.2% *10 mo/12 mo) = 200m waived penalty.

[Henrye]

Gabriel, your math is bang on and your process of thought is remarkable and logical. Even if there is a slight variance, its a huge win win for Aecon and its valued shareholders and no doubt the other legacy projects will convert from negative to a clear positive and will too be reported as they will be reflected at year end and perhaps first quarter!  Gabriel I personally as no doubt