Ann: Binding Offtake Agreement - Japanese market, page-54

Morning all, I didn't take much notice of this ann. at the time and am jet lagged at the min, so thought I would cast my eye over the announcements again.

I see a few posters were discussing the ann. looking at binding, non-binding etc.

I think it's clear that ADN is in the driving seat with regards to the negotiations and again given themselves a very simple get out clause:



As you can see, they can simply pull out of the agreement if they decide that it's not commercially viable when the FID is finally completed.

Why would ADN want to have an agreement that the can simply get out off:

1) Firstly, its KCM and only a small amount.
2) Are ADN negotiating larger deals for higher value products and are confident that they will need the full allocation of the stage 1a and also 1b.

I am sure there are more reasons, and happy for posters to add.

With the second point above, with the Chinese agreement, this was just a term sheet and the offtake agreement will look to be signed no later that the 30th September.
Again, why not straight into an offtake agreement, could it be as simple as just getting out of the 5000t of KCM or even the whole contract if something better comes along (Again, there could be many more reasons, and happy for posters to add). Given what Bob said in the ann. and only referring to CRM then its likely just the CRM:



I'm personally hoping that the funding, uDFS, FID are hinging on the report re HRM and samples also being sent to Europe since the last trip. This however then goes back to the point around Bob stating it can take up to 3-years. I have a few ideas around this but am going to leave it there for this morning.