Ann: Significant Binding Offtake Agreement Signed for Great White, page-325

I'm wondering about this deal, and if I were a biographer I would expect this to be a chapter. Words like pivotal get thrown around a lot, however this is pivotal from a few angles, but surely the most significant by far must be proof of demand; if certain parties are struggling to grasp the intricacies and complexities of what ADN is bringing to the table, then surely a binding offtake agreement will be easy enough to comprehend.


There's so much that could be said.
It looks like the buyer may be selling the product on. I suppose you could criticise ADN for selling too cheap and not riding the commodity wave. But commodity price speculation is not ADN business, so good on them, I feel. But very typical Chinese style, aggressive sizing and full blown commitment at an earlier stage than other slower movers. I must say I didn't expect a commodity trader to hoover up so much product at this stage, but actually as I think about it, why on earth not?

I can see why ADN would do the deal, as it proves the business case; at this juncture, greasing the financing wheels is a great plan. Actually, it makes room for ADN to push forward with even more ambitious mining targets in other areas to increase production and develop various other areas further; I think that there's a lot of thought gone into this and this could accelerate processes quite significantly in terms of scale of the project - if that could possibly be feasible as plans are already ambitious!!!!

Regarding pricing, as others have noted, it could lead to a bidding war for product!!If product is as good as they say it is, then great move from Chinese traders....they will squeeze the mkt and do well by buying up the best physical product in the mkt.ADN will also like it, as it will push prices higher and in a few years time will offer ADN a much better idea of just how elastic price may be to the coatings sector.

Could it delay DFS? Possibly. But so what? It's a resounding proof of concept that any company in ADN's position would love to receive.