It's interesting from that article mentioned in my post above , the bit about Alita has been selling below the agreed floor price of $680 per tonne.
Does this mean we have been selling to our Off take partner at below the agreed floor price, if so would people consider this price sensitive information?
or does it just mean we have been selling on the spot market at below the agreed floor price but our Off take partner continues to pay the floor price that they agreed to?
Or is the article incorrect?
Anyway, couple of thoughts
1. Should we just insist our Off taker meet its Off take requirements, after all they agreed to them. Does anyone think if the situation was reversed and prices were soar above the ceiling prices that they would agree to pay higher than the ceiling? Like I don't , but perhaps there are some out there that believe they would.
2. If our Off taker is having cashflow issues and needs a lower price then perhaps a compromise would be to allow a lower cash payment but offset the difference against that interest free prepayment that we need to repay at some point
From the Off take adjustment announcement,
"Repayments of outstanding interest free offtake prepayments (US$8.8million)1 frozen until 2021. Offtake prepayments remain interest free and repaid at the rate of 15% of the value of each lithium concentrate shipment from 1 January 2021 until repaid.
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYD4gi/yBOZoYMJke92GA==
So perhaps just bring forward that repayment schedule to assist our Off takers with any immediate cashflow, obviously not good for our immediate cashflow, but perhaps better than just giving our stuff away at lower prices than agreed.
All just in my very humble opinion as always