While I understand your concerns about entering into offtake...

While I understand your concerns about entering into offtake agreements early, like what happened with SYA and PLL, there are some benefits to securing offtake agreements before production begins.

Reduced risk: Securing offtake agreements can help reduce risks for both the company and its investors. These agreements provide a guaranteed market for the product, ensuring a stable revenue stream once production begins. This can help attract more investors and provide a level of assurance that there is a demand for the product.

Financing: Offtake agreements can help secure financing for the project. Lenders may be more willing to provide funding if they know there is a guaranteed buyer for the product. This can help the company obtain the necessary capital to develop and start production.

Price stability: While selling at auction may result in higher prices, it also introduces price volatility. Offtake agreements can help lock in prices, ensuring a stable and predictable revenue stream for the company.

Strategic partnerships: Offtake agreements can lead to long-term, strategic partnerships with buyers. These partnerships can provide benefits beyond the initial agreement, such as access to new markets or collaboration on future projects.

That being said, it's essential to negotiate fair terms in the offtake agreements to avoid unfavourable situations like the SYA and PLL incident. A well-negotiated offtake agreement can provide a balance of security and flexibility for both the company and the buyer.

While selling at auction may be tempting, there are several advantages to securing offtake agreements before production begins