Binding or non-binding, its still an offtake for 100% of the cobalt and nickel production for the first 7 years + 6 year option.
Prices linked to LME like most offtake agreements/contracts.
That agreement took place at a time confidence was a lot higher and it didn't get much of a reaction. I doubt any offtakes go entirely binding without plenty of clauses for companies so far away from producing anything. Buyers arent going to want to be locked in for years unless they know things are 100% going ahead with the capex roadblock.
I agree its no certainty to go ahead. To the contrary, the deal with Bergen really reeks of desperation and no certainty that SKI will buy in IMO. Possibly the opposite, but thats just speculation. I also cannot get my head around how they can have apparently provided the BFS to possible financiers without releasing to the market. Its material any way you look at it.
ARL Price at posting:
61.0¢ Sentiment: None Disclosure: Not Held
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