Why Speed to Production Matters, page-17

B

Bomber...I meant the "Speed to Production" to be a quick in-and-out side trip; but there is one more
angle I would to call attention to. It is pretty speculative;  but there is reason to consider it,
in connection to the conversations about off-take agreements and uncommitted production.

Some time ago, incidental to real substantive  news, I saw that Robert Friedland was in London having discussions with the LME. Some time after that, the LME announced that they would be trading cobalt-related contracts and creating indexes for the pricing of  cobalt and cobalt sulfate.

The thought occurs, that if CLQ (or anyone else) has uncommitted cobalt or cobalt sulfate, they might be able to sell it directly through the LME, at market prices. Suppliers who are directly selling the physical through the LME
would  not have the need for customer off-takes. They could sell their production at the spot market prices through the LME at spot market prices on contracts bought by interested parties.

This is my speculation. I have nothing factual to present as confirmation; other than the circumstantial evidence,
which is completely consistent with known facts and Friedland's oft-repeated position that he will not take off-takes at fixed prices.

As speculative as it may be, I  believe that this is what is going to happen. I suggest...no, I predict...that CLQ will sell a large percentage of their production into the LME to satisfy contracts placed there, and thus realize full profit as market conditions allow, without the need for off-take agreements with customers.