Was wondering out aloud what would happen if Paul just did an offtake agreement directly with CBMM. Ideally wholesale supply at 5% under the market rate and effectively you then have direct access to every existing agreement and supplier that they have. Market pricing unimpacted. Supply customers where transport costs are lower for anywhere it is quicker to ship to from WA versus Brazil - basically APAC customers. Gets around FIRB issue with limitation of direct holding/investment by CBMM. Allows access to processing and product line IP. Maintain flexibility to establish new customers outside of this agreement so it is not perceived as anti-competitive.
Might be a silly idea or Paul may not want to be boxed in at this stage, or CBMM may simply not be interested or want a major discount to the supply rate, but it would seem it might go a long way in market perception and/or attractiveness as a takeover target compared to just one offtake with a single steel manufacturer?
WA1 Price at posting:
$13.92 Sentiment: Buy Disclosure: Held
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