From June 14th rns4 Jul 2022 11:28
Coke Battery Update
“The Company's primary objective is to produce and sell coke for the Southern African ferro alloy and industrial markets that require coke in their furnaces. Coke is an upgraded product derived from coking coal and commands a significant price premium to coking coal. The Company has been in discussions in recent weeks with a number of potential offtakers for its coke product, including AtoZ, existing coke producers in Zimbabwe and international commodity trading houses. At current pricing the Company believes a long-term margin of over US$350 per tonne would be achievable on coke produced at Lubu. Contango intends to enter into a long-term offtake agreement on Lubu's coke product later this year, once washed coking coal is produced at Lubu.
Based on conversations with potential offtake partners, any future offtake agreement for coke is likely to be accompanied by the requisite funding to finance the associated infrastructure required to produce coke, principally the installation of coke batteries at Lubu. The Company expects to be cash generative by year end, as a result of the offtake with AtoZ, which will further strengthen its position in any discussions.”
Surely this is the Chinese who will install the coke batteries in exchange for off take deal