All depends on contract. Contract are one of the most closely guarded secrets in industry. None of us can know what will happen. So how can you be sure? Things like penalties are always very hard to negotiate. You said you own apartments how many of your contractors will put penalties in their contracts. If they do the price will be much higher. it is all a mater of what is important to each party. Not saying there are not penalties for none delivery but Lynas may have chosen low price and flexible delivery. KAL was late and is still running at much lower production levels. There was nothing in SAR about Lynas paying failure to take penalties so I would doubt there are failure to deliver penalties
Another thing that makes me think there are no penalties is this statement by BHP. this sure does not sound like they are going out of their way to meet the deliveries.
"BHP AFFIRMED COMMITMENT TO USING REASONABLE EFFORTS TO SUPPLY IMPORTED ACID TO LYNAS"
Remember this acid was a by product of making nickel not a main-line product for BHP. Usually when selling products like this they do not want a complex contract. Think of going into a store that has a sale that in fine print says while supply lasts. What can you do if they are sold out?
LYC Price at posting:
$6.40 Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)