Sale price for graphite under 3 year agreement

Here is the latest graphite price information from Industrial Minerals

US$ per tonne (94 - 97% Carbon):
Jumbo flake - $3000 - $3,500
Large Flake - $2,300 - $2,900
Medium Flake - $1,800 - $2,200 (+100-80 mesh)

VXL say that they have forward sold coarser flake graphite (read: medium/ large/ jumbo) at more than US$1,335 per tonne under a binding contract for 3 years.
This is not a good price but companies trying to break into the market need to sell for less than the market price. Nevertheless the size of the discount to market is surprising.
The company has locked itself into a low price for 3 years. This is a risky move given that some experts say prices will increase for large and jumbo flake.
If coarser flake is being sold for a substantial discount it seems reasonable to predict that fine category mineral will also be discounted. Almost certainly fines will not be saleable for the cost of production.