pygmy - good post - good argument/logic - and yes it would make...

First 52 Last

Share
Profile

Follow
nammuldi

2,266 Posts.

58

03/03/17

12:58

Post #: 23076758
Share

Originally posted by pygmyhipppo ↑

I have to say I had - and to some degree still have - the same concerns regarding breaking into a very tightly controlled market with possibly exclusive contracts and dominated by a single supplier.
However, the company has repeatedly stated that offtake negotiations are well advanced, e.g. see quote below from the FEED update 11 Aug 2016:
“Negotiations with regard to offtake agreements are continuing with multiple parties covering four geographical regions. Revised proposals have been received from the parties with volume commitments and final pricing mechanisms being closed out.”
Now, while that doesn't explain why many months later these negotiations still haven't yielded a tangible outcome, it sure doesn't sound like Cradle couldn't get a foot in the door, and I have no reason to doubt the veracity of these statements.
Also, it seems to me that from a steel producer's perspective it would be highly desirable to establish and develop an alternative supplier, if only to mitigate risk in case of unforeseen events. Being locked into exclusive contracts with a single supplier sounds like a rather vulnerable position, e.g. in case of natural disaster or other “force majeure” events that could potentially disrupt supply.
So that's my five cents' worth. I'll go back to muttering to myself now.

Expand

pygmy - good post - good argument/logic - and yes it would make sense from steel producers to have that alternative source - then it begs the question why it is taking so long - something missing in our logic??

CXX Price at posting: 24.0¢ Sentiment: Buy Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

RSG

Resolute shares bounce back as second payment made to Mali government to secure workers' release

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor

ADD

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

HotCopper Highlights: Your most watched stocks for Week 48, 2024

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher

There are more pages in this discussion • 3 more messages in this thread...

First 52 Last

Add CXX (ASX) to my watchlist

pygmy - good post - good argument/logic - and yes it would make...

Top Stories

Resolute shares bounce back as second payment made to Mali government to secure workers' release

Week 48 Wrap: ASX flirts with 8,500pts; APRA declines mortgage loan easing; Trump's Bessent tied to Dem donor

Parkes Au-Cu project to 'transform' Adavale Resources with key targets

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

HotCopper Highlights: Your most watched stocks for Week 48, 2024

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Ice-cold winner: Cryopreserver Vitrafy escapes November's IPO struggles to end debut week higher