RE:RE:RE:Seeking Alpha updateAlthough the details of the offtake agreement have not been disclosed, it is frequently the case that the discount varies based on the commodity price. A floor price can be set in the offtake which protects the miner from being in the unsustainable position of needing to produce even at a loss, which means that there are cases in extremely low pricing where the offtake partner would be pay above market price. On the other hand, as the commodity price goes up, the discount usually also grows, sharing more potential profit when things are good.
So although this is pure speculation, $5 seems to be the number that's widely regarded as the floor price, and around this point I would imagine that we have minimal discount and it may even be the case that if the price were to drop further (which is unlikely for any sustained period) that we might still be selling to Glencore at $5 still.
The point being, when we talk about breakeven and assuming that it is a linear scale where as the V price goes down the production needed must equally increase is probably not accurate. I do hope that we are able to get there soon, whatever the percentage is. If we are able to be cash flow positive (this does refer to being able to pay all current liabilities such as loan payments) in the near term (someone suggested it moved from end of Jan to Feb) then speculation on another round of financing would be quashed and I would expect a significant recovery in share price. It is worth noting that Feburary is a pretty slow time in Brazil, though.