If Oceanwide have an offtake agreement for 60% then that is all they are entitled to.
If they have expressed a willingness to take 100% then it is up to WM and board to decide if they will entertain the interest and obviously on renegotiated terms to the original deal .
There is no doubt, in my mind, from recent events with Glencore, that Oceanwide do not have an exclusive for more than 60% ALL offtake...whatever the Cu product is. CDU have played it very smart from the start in that regard.
You are right, it seems that a decent quantity could go to Glencore and other smelters in China and Korea. There is interest out there away from the original Oceanwide deal. The Glencore deal is testimony to this and there appears to be interest from other and non Chinese offtakers...I am not surprised.
In my opinion this could be a case of CDU and WM "keeping the bastards honest " in line with the late Don Chipps (ex Aust Democrats party leader) sentiments and policy.
The net prices are not reflective of the reality in the market place from my experience. Grades, Quantity bought and private company supply needs tend to play a major part in direct sale prices. You would find these prices quoted in some Chinese subscription sites... it may cost you a few thousand dollars to get a subscription but most of the serious industry resource intelligence firms will have access to these sites.
Ryans notes (google it) is quite useful but if you are selling into china you may need to dig around to find the right information, it's not free.
There is a lot more to it than meets the eye .. I am sure a few out there already know this.
Cheers HR,
No advice given or intended.. DYOR
CDU Price at posting:
$1.32 Sentiment: None Disclosure: Not Held
