tinstuff, a binding off-take is a contract. VXL is completely in a position and allowed to sign one of those, and while they are binding agreements to supply a set amount (with potential penalties for non-delivery), the benefit of a binding off-take far outweighs the negative. In fact, most suppliers can't even get a mine built with debt funding without having a binding off-take (contract) to satisfy the financiers.
I would suggest that if VXL haven't secured an off-take, it's not because of a fear of any potential penalties for non-delivery.
FYI - If management are truly worried about not being able to supply a set contract amount per year, then I'd suggest the company has potential problems with it's plant and equipment that is causing management to not be able to put faith in their production targets, and that is a whole pandora's box right there, and my sentiment would change to sell immediately (please note that I'm not actually suggesting that is the case).
Having an significant investment in a company with an off-take, I can say that with all the nuances of individual graphite deposits and their flake sizing as well as grade, it takes time for testing to be done on the product, and the product may either not suit the buyers it's been sent to, or the potential buyers are still in the process of running tests to determine if the graphite meets their technical requirements. From start to finish, for very specific uses, some buyers may take between 6-12 months to work out whether they want to use a particular type of graphite, and often they are testing multiple products from different mines at the same time (or at least shortlisting them). Unless an earlier user already had access to past testing results, it might take a while longer for VXL to find enough buyers (I can't remember who, but a previous VXL poster did state that a previous buyer of Uley graphite did jump on a plane to investigate a little while ago, so that could speed up a process dramatically if they have intimate knowledge and comfort in the product).
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