Maybe 2.5% for the marketing of the coal is fair however the financing that pays us early and ICT bears the interest until payment comes through. So maybe 1% for payment. The rest really a bonus for saving the company.
At an AGM a couple of years ago, Domenic told me that the China Rail deal was the same interest rate for the US$20 million capital. The offtake deal was discount $10. Fair enough, then on the day of contract finalization/signing, China Rail turned up with an altered contract with a $50 discount for offtake. So there and then the contract was terminated and Eddie stepped up to the plate.
Domenic said that at that particular time, it was viable to discount $50 but he concluded (rightly IMO) that any sharp drop in prices would have us producing at a loss.
That whole kerfuffle cost as over a year delay.
So that is a memory from years ago and IMO. Not to be taken as fact.
Maybe 2.5% for the marketing of the coal is fair however the...
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