found this on an old HC post, but it gives not details of the floor price itself..
Based on the date(s), the RE floor price may not be particularly high... however, one would assume, it would be locked in at a level that makes it viable for the company to turn a profit.
1 Aug 07 • Second customer supply contract signed for Rare Earths project • Contract value in excess of US$200 million, over five years • Minimum floor price in contract, with no maximum ceiling price • Important contract in the growing Rare Earths magnet market Lynas Corporation Limited (“Lynas”) (ASX code LYC) is pleased to announce the signing of the company’s second supply contract with a significant Rare Earths customer for the supply of Mt Weld Rare Earths to be produced from the company’s Malaysian processing plant. The contract is a long term five year contract with a value in excess of US$200 million over five years based on current prices. The contracted sales cover neodymium and praseodymium which are key elements for the Rare Earths magnet industry. The pricing structure of the contract is related to the market price; however it includes a minimum floor price, without a maximum ceiling price, for the product sales over the term of the contract. Lynas’ Executive Chairman, Nicholas Curtis, believes that the signing of the contract is another key milestone for the company and the Rare Earths project: “The Rare Earths magnet market is growing very strongly at fifteen percent per annum which is forecast to continue for the next five years. This is an important market for the company and it gives certainty to the company’s cash flows. The Board is delighted the company has signed a long term supply agreement in this market”, Mr Curtis said. The company continues to be actively engaged with additional potential customers in Europe, Japan and the USA.;)
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Lynas signs sixth customer for Mount Weld rare earths Tuesday, 13 January 2009 Sydney - Tuesday - January 13: (RWE Aust Business News) - Lynas Corp (ASX:LYC) has its sixth customer agreement for Mount Weld rare earths to be produced from the Malaysian advanced materials plant. A supply contract has been signed with a consumer which will purchase material from Phase I of the advanced materials plant, which has a planned annual capacity of 10,500 tonnes Rare Earths Oxides (REO), plus additional volume from the planned Phase II expansion, which will increase the annual plant capacity to 21,000 tonnes REO. The multiple-year contract supply contract covers a minimum tonnage of REO to be purchased and includes the potential to expand this volume as well as extend the the contract upon mutual agreement of both parties. The detailed terms of the supply contract are commercially confidential. With this contract now signed, Bayerische Hypo und Vereinsbank AG (HVB) has confirmed that the level of signed off-take contracts exceeds the current value required to satisfy the condition precedent related to off-take contracts for present drawdown of the $US105 million senior loan facility. The above confirmation satisfies an important condition precedent for release of the $US95m bond monies from escrow. The contracts signed to date are with industrial companies whom consume large quantities of rare earths, rather than with intermediate trading companies. The contracts are all for minimum fixed volumes which are reflected in the value of the contracts previously announced. Under the typical contractual provisions, Lynas delivery obligations commence upon actual start up of the plant in Malaysia.
BASF deal did not mention floor price http://www.asx.com.au/asxpdf/20110902/pdf/420v56gfl260q8.pdf
another asx ann. has not floor price but mentions the floor price http://www.asx.com.au/asxpdf/20070801/pdf/313rktnqltr5lz.pdf
Indeed the only mention of actual floor price was 12.5 USD / kg and it was in a topstocks post (? correct ?)
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