I think the SMR proposal looks fine. It looks like they are...

I think the SMR proposal looks fine. It looks like they are passing on the risk of dealing with smaller parties when selling on the spot market. See below excerpt:

"Why is the Company
seeking to sell product to
a related party?
The Proposed Product Sales to M Resources Trading will comprise
volumes that would ordinarily be sold to tier 2 customers which would
otherwise be made directly by the Company (i.e. in the Company’s
opinion higher risk, low sale volume customers). As the majority of the
Company’s sale volumes are generated from contracts with its tier 1
customers (i.e. in the Company’s opinion, lower risk, high sale volume
customers) which will remain under direct relationship between the
customer and the Company, the Proposed Product Sales are not
expected to affect the majority of the Company’s sales volumes.
The Proposed Product Sales is not an offtake type arrangement (which
creates an obligation on the Company to sell product, or an obligation or
right for M Resources Trading to purchase product). Rather, the
Proposed Product Sales provides the Company with the flexibility to sell
product to M Resources Trading if it considers the terms of the sale to
be commercially attractive at the time of the sale. The Proposed Product
Sales will increase full optionality to the Company to maximise margins
by unlocking the option to sell spot volumes and/or tier 2 volumes to M
Resources Trading without having to accept the counterparty risk that
the Company would need to if it was contracting directly with tier 2
customers.
The Company seeks the flexibility to be able to sell additional volumes to
M Resources Trading for this purpose on commercial arm’s length
terms.
Why is Shareholder
approval required for the
Proposed Product Sales?
Matthew Latimore is a director of the Company and also controls M
Resources Trading. Accordingly, M Resources Trading is a related
party of the Company for the purposes of the ASX Listing Rules and the
Corporations Act. ASX Listing Rule 10.1 precludes the Company from
disposing of a substantial asset to a related party without shareholder
approval. For this purpose, product that in aggregate exceeds 5% of the
Company’s equity interests (currently $66.8 million based on an equity
value of $1,333.6 million as per the Company’s financial statements
dated 31 December 2022) can be considered a substantial asset.
As the Company may sell more than $66.8 million worth of product to M
Resources Trading, prior Shareholder approval is required."