RE:FertiSdome you are correct ... I'm an Ag guy.... My thoughts are 6 - 8% down to 0% on the sliding scale. Discounts are not typically massive on fertilizer commodities...
From the Allana site.... I see nothing alarming below...MAybe we will hear more from Farhad at the PDAC... I'll keep you informed...
Details of the Transformational Transaction in the Sector
b. Solid Offtake Agreement
ICL has agreed to a solid take‐or‐pay offtake agreement under which ICL will purchase
the production of Allana’ project output up to 1 million tonnes per year of MOP with a
take‐or‐pay commitment on a minimum of 80% of the project’s output. Pricing will be
based on a sliding scale discount to a defined “market price”. The agreement includes
typical terms and conditions for product supply agreements and shipments and also provides allowances in time for production ramp‐up while maintaining the minimum
80% take‐or‐pay commitment. The term of the agreement is for 10 years beginning
when commercial production commences, renewable for subsequent 3 year periods
thereafter if both parties agree.
sdomae wrote:
Your an industry insider , right? And you've seen many deals get done in your time. So it would only be natural that you would know what the typical industry discount would be. Allana won't say. They say it is confidential. But why would telling an investor the normal discount range be out of line? What in the hel l are they hiding from us? Telling the normal discount RANGE would not be in breach of contract. Something stinks here. What is it?