WOW Excellent News ! Great job from management negotiating these extremely and surprisingly favorable terms to the company (only 5% commission + market based pricing + 30 days direct payment term form Possehl, affording stability, constant predictable cash flow, and derisking to Graphmada and saving the company much more in time and money finding and transacting (distribution logistics, financial costs) with customers in Europe). This is a win-win deal for Possehl (selling best quality graphite in the world) and BSM (derisking production and sales at best market prices).
The extremely faorable terms reflect improvements in the graphite market.
"Possehl Erzkontor GmbH & Co. KG (Possehl), based in Europe, is to purchase 3,000 tpa of graphite concentrates to be produced from the Company’s 100% owned Graphmada Large Flake Graphite Mine, located in Madagascar, for a period of three years from the 1st of January 2018.
Bass and Possehl will agree on pricing for the Company’s concentrates based on fully transparent end-user demand while linked to CIF port of destination Incoterms 2010. Possehl will earn a 5% commission on all sales through its European distribution network, paying Bass directly on 30-day payment terms, thus minimizing Bass’ sales and logistics costs into Europe, while maximizing the Company’s cash flow efficiency.
Company representatives will be attending the Aachen Refractories Conference in Germany later this month, along with Possehl and end-users, to conduct a series of meetings in order to discuss the sales and logistics of supplying Graphmada premium graphite concentrates into Europe.
The Company looks forward to working with Possehl now and in years to come.”
Happy multi-bagger graphite and lithium investment to all !
