20 Jan 2021 "AMENDMENTS TO RKEF PROJECTS COLLABORATION...

20 Jan 2021 "AMENDMENTS TO RKEF PROJECTS COLLABORATION AGREEMENTS"

Revision to Hengjaya Nickel and Ranger Nickel Offtake Pricing Methodology
The pricing methodology for the sale of NPI produced by Hengjaya Nickel and Ranger Nickel has been
brought into line with the methodology agreed for Angel Nickel production and current nickel market
realities by the removal of a reference to LME nickel prices.
Since the execution of Hengjaya Nickel and Ranger Nickel Collaboration Agreements, the dynamics of
the nickel market have changed with the pricing of specific nickel products increasingly driven by their
own supply/demand fundamentals. This development is now being progressively acknowledged across
the nickel industry with a growing propensity to quote and forecast prices of specific nickel products.
With the NPI market being very much ‘China-centric’ and with NPI not being an LME deliverable product,
the continuing reference to the LME nickel price is no longer considered appropriate.
Consistent with the Angel Nickel Collaboration Agreement, Shanghai Decent (itself or through any of its
affiliates), continues to be committed to irrevocably and unconditionally purchase all of the NPI product
from the Hengjaya Nickel and Ranger Nickel RKEF projects with sales contracts based on third party,
arm’s length prices ‘at the then-current price for NPI in China’ with minor adjustments applied for product
specification, freight and foreign exchange.
Indicative daily NPI prices in China are available from several third party, publicly available sources
including https://hq.smm.cn/nickel.


No exact formula given but there you go.