The offtake agreement does not guarantee a price bowser... Currently the company has the first 9months of production hedged at approximately $US120/tonne, but there are no hedges in place after that time.
The offtake agreement merely is a contract for that partner to take all our ore for a certain amount of time. The reason they hedged the first few qtrs of production was in order to insure against a drop in price, as they NEED to get that price in order to meet their debt repayment schedule. This was a wise move it would seem...
umm, page-4
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