Ann: Offtake Update, page-204

The tesla offtake negotiation did exactly what was intended, it put cxo in the limelight for anyone looking at the sector.

The fact the offtake didn't eventuate is really irrelevant at this stage given the capital appreciation attached to the prolonged negotiation period and which ultimately allowed the company 1. to raise cheaper equity / less dilution and 2. put some competitive tension for anyone else looking to secure offtakes.

There would be no shortage of parties looking for offtake at more favourable terms than those Tesla was willing to offer. At the end of the day getting in bed with Tesla (limelight and capital appreciation aside) was never going to be as profitable as some of the smaller offtakers who have existing downstream conversion capacity and who wouldn't be reliant on toll treating themselves unlike Tesla.

Spot exposure is great in the current market but I wouldn't rule out swift signing of a replacement offtake with someone like catl / yibin, sk, etc referencing market pricing.

Offtakes are much more relevant when looking to secure debt funding which for cxo is not a concern at this point in time.

Aimo