So interesting re tweet from y Kim on a * report on silica sand. They broke diwn each of the major companies in Oz and the para I thought hat was most pertinent was on Australia silica
"However, it blamed unusually high international bulk freight rates associated with the COVID-19 pandemic for hampering efforts to market the product to the Asian glass market".So for all the FOB posters that said freight costs were irrelevant because the customer pays, this extract will tell you that whilst the customer pays fob, the selling price to ensure fob is too high because of our freight costs.I wonder if this is the main reason why we do not have offtake agreements yet. DUNNO PURELY A GUESS. Be nice if we were told something about the high freight costs. Hopefully it's purely a covid related issue and by the time we get to market (2023) freight costs will be more normalised. If this is the case then we may not get any offtake agreements signed for some time. I hope I am wrong.
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