Ann: Jaguar Taking Shape as a Globally Significant Nickel Project, page-11

Crux, September 2021

Matthew Gordon: What does arm's length mean? Do they have the right to match, right for first refusal?

Darren Gordon: Effectively, I can go out to a battery maker or a car manufacturer and enter into some strategic supply arrangement. But the good thing about going down the sulphate path is that it’s LME plus a premium. So really, what you're talking about is trying to square away what that premium looks like. Having LME as my base means that's probably 25% higher than it would be if I was selling a concentrate in the market, so I can at least know that I'm going to get to that point quite comfortably, then it's a just arguing about the sulphate premium. In the scoping study we use 50c/lb. Right now it's probably closer to USD$1.50/lb; this is the nature of what we're dealing with and I think that in all likelihood, that premium will continue to exist, particularly in projects like this.

“The premise of our deal was always around arm's-length pricing: we choose the product, they've got to decide whether they want the product. If they want the product it’s arm’s-length pricing. Yes, we've still got to work through that at some level.”

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