Patto, really well off if we took the deal. However long term it was likely to be a disaster for us shareholders. If I remember correctly, it was an offtake deal. All was sweet until the final meeting for contract signing. Then Rejian decided to put the boot in. My understanding was that the deal was meant to be a discounted price for upfront funding and guaranteed offtake. 15% discount sticks in my brain for some reason and length of deal 5 years.
At last moment, I seem to remember the discount was changed to something like US 50/tonne. So immediately Cokal would have got between US 95 to 100. (Cokal wold still be getting US 100 as prices have held up) However, just imagine if PCI dropped to US 100/tonne! Cokal is in the red.
So right now, I would suspect we would have been in the 20's. The price was already 8.5 cents on the prospect.
So short term gain at the severe risk of long term excruciating pain.
I am a gambler and believer in a stronger for longer coal price so I would have taken the deal or at least begged for a better deal like US 35 discount.
All in my opinion.
