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Well in this case, and including my own Lithium post, it seems that the topic of Lithium was left behind and talks of gold, fertiliser and takeovers have taken precedence. We do have quite a bit of Lithium, you know, and I am happy to think that the desperate hope of a takeover will soon evaporate as I don't buy into AIM to get my money back + a packet of sweets.
Agree totally AJ, even though it would be a big packet of sweets. So far I have not seen a lithium deal negotiated in the same time frame as ours. That means (for others benefit) the initial agreement signed after lithium rose steeply mid year 2021. One agreement signed will give us an indicator of the amounts they are paying for a deal. All so far, have had their initial agreement signed before the price rise, only the final agreement signed after the price rise.
The details of this deal could be interesting https://themarketherald.com.au/firefinch-asxffx-boosts-forecast-for-goulamina-mali-2021-10-20/
No mention of money in the article, but there may be elsewhere or in the near future.
Not even on our radar.
One of the deals they have signed is to be paid the spot or market price each day, but on a take or pay contract. Interesting, the high lithium price is creating new style contracts.
Take or pay is good, reduces risk and would gain better loan terms.
Morning Laverda,
I think take or pay might not be as good as it sounds. The point I would like to raise is that it might be useful to a supplier of a product that is perishable or might diminish in value over time but I don't think you could treat the commodity like you could when you sell someone a seat in an aircraft and then sell it again when the original purchaser didn't arrive in time and then you can make an additional killing by fleecing someone desperate to pay for the seat just prior to take off. Not pretending I know much at all about the subject matter but I would need a lot of faith in the authenticity of the individual or entity I was dealing with if I was selling them bricks. Hope the point I am trying to convey comes across as, more-than-less, rationale?
Regards, AJ
AJ, that particular deal was with Renault. It depends on the detail. If there is a favourable or free loan facility or a pot of cash attached, it would be brilliant.
I can't see them not taking material, however if they did not you get paid twice. In addition they are not giving away anything, not one tonne and they are not losing a penny off the rising price of lithium.
They are not publishing the rest of the detail, but any variance to the old get a cheque and give away half the turnover/profit is interesting.
Just to put into simpler terms, imagine if they do not have to issue shares or sell half the shares in a JV. What would that scenario do to our share values?
Or will the JVs realise that they have to dig deep and write some massive cheques?
I hope over the following months more deals are signed and we see the detail. The link I gave below was for a 2026 deal!
Hi Laverda, I agree there are numerous scenarios that might come to fruition and I suggest that BA might wear a body cam in future (outside the bedroom and bathroom, of course) so he can keep us fully in the loop! All those in favour, say "Aye"
Not sure we could really pressure BA into this fly on the wall experiment!
Great to get a feel of the excitement that is building over the coming months and like yourself, I would love to hear of a new deal in similar circumstances so we can see what is possible for Kodal and its core of "INVESTORS". And what about the gold?
Agree AJ, just excited about any communication and any other deals completed around the world, out of interest more than anything. Same as you.
There seems to be ten times the news on construction which will create demand than on new lithium mining deals.
Every week I see another company looking for a resource which I have not heard of before.
Four car manufacturers now going after resource.
It is hotting up.
AJ Vulcan has done 3 deals in 90days, but the detail, for example any payment or loan facility has not been included. The last has just been signed, so more may be released. Their share price is up, even though some of the deal relates to 2026.
Laverda, I guess they are concerned that making the details public at this point might set a precedent. I'm guessing, of course, that no news might be good news! Or, perhaps there is still more to finalise and this can only be done when materials eventually begin to change hands? The mind boggles!