My understanding with offtakes is that they could place every single gram with their JV partner, or every single gram with any of several mills in Australia. There is a big shortage of quality material and new environmental issues with a lot of old sources, and the Sorby ore is highly sought after for its quality and grade.
One twist is that if you place it all to one place then its very easy, but its risky. What if that one mill went broke? Or if there was a flood, and you couldn't get there? Or a Chinese blockade due to some sort of balloon related incident?
So you try to spread it around to a few mills, but then each individual mill has to be appeased and have it fit into their schedule, that changes every time you make a minor tweak to who gets what and when. Each has different transport requirements, transport costs, preferred grades, preferred schedules that also change. And each has different terms, and they have to blend the terms of each to come up with the best outcome for you as a shareholder.
Some would come with upfront payments, but lower back-ends. Those terms then affect the financing options.
Or, they could just bang it out to appease a few pissy traders that probably already sold out and are just looking to say I told you so over and over and over...based purely on the share price.
Also, while I'm at it, I think its time for everyone to give a well-deserved golf-clap to management for raising money when they did. If they'd listened to some of the loudest clowns on here they'd be out of money and scratching around at 20c for a hell of a lot more dilution after a market downturn. On that basis, I think people should stop telling them what to do from the sidelines as if they know any better, when they clearly don't.
BML Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
