17/02/22 - Yahua announced a Supplementary Agreement to the April 2019 Offtake Agreement.
http://www.cninfo.com.cn/new/disclosure/detail?stockCode=002497&announcementId=1212385260&orgId=9900015673&announcementTime=2022-02-17An English translation is as follows:
"
At present, Core Australia has started mine construction as planned, and it is expected that in the fourth quarter of this year, it will provide the company with lithium concentrate according to the agreement. On February 16, 2022, Yahua International and Lithium Development, a wholly-owned subsidiary of Core Australia, signed the The Supplementary Agreement to the Offtake Agreement, the supplementary agreement adjusted the reference price and maximum price of lithium concentrate in the original agreement, and re-agreed on the relevant terms of the delivery of products at FOB prices. In the future, if the Australian Core company intends to expand the production of the project and have additional products that can be sold to Yahua International, the two parties will further discuss the purchase and sale agreement for additional products"
Stephen Biggins was asked about this during an interview with Crux Investor on 04/03/22 where he stated:
Q) Yahua announced recently that they signed an updated offtake agreement with you guys but you haven't mentioned that, was it not significant?
A) Uh there was some commercially sensitive terms that we resolved with Yahua as we've done from time to time in the four or five years we've had the relationship with Yahua. Um, so yeah we're quite happy with where we've got to with that.
Q) Okay so nothing- it's a course a business, nothing significant just tweaks?
A) Correct it's about sort of aligning the agreement up to reflect the current markets.
Conclusion
So in a nutshell we have an unknown contract price, tied in some unknown manner to SC6 with an unknown floor and ceiling price - but at a level that made Steve Biggins "quite happy" in Mid-Feb 2022 (which lithium prices first started going parabolic).
In exchange Yahua retain right of refusal to additional quantities we may produce until the end of the offtake. The floor and ceiling price is for 2 years - likely from the date of "commercial production" per the Ganfeng offtake but we cannot be sure.
This clause is likely how Yahua came to acquire the additional 18.5kt.
Yahua has also prepaid us $20m (ref: DFS) which I do not believe has been repaid, so you'll need to factor that in to the expected revenue from the 18.5kt sale. I understand how the number of unknowns can be frightening but we need to trust Steve acted in our best interest during re-negotiations. Either way it is unlikely that we are going to be selling Spodumene to Yahua at anywhere near the prices Sayona is selling 50% of their supply to Piedmont.
Also it is important to retain perspective and remember that it is because of their investment in the early stages that CXO is in the position it is today. Any discount to market Yahua gets now is their reward for taking a gamble on, what was at the time, a relatively high risk explorer/developer.
Water in the pit
Please see below gif from between 10/03/23 and 20/03/23 (photos taken in 5 day increments).
I apologise, there was cloud cover on the 25th and 30th so I cannot get more up to date photos than that.
But if you extrapolate the drain rate - it is likely the pit is empty or nearly empty by now.
(20min delay)