RE:RE:RE:RE:Glencore contract is exclusiveZincDink1 wrote: I can't say GC is 100 percent paying spot, but it is based on market conditions and the only floating zinc tc I am aware of is China imports (the domestic market price floats as well, but not nearly as much). This is what the management team refers to in updates.
So, it could be market conditions with floor price, riders, whatever.
Would no board agree to that? This is how the board bankrupted Nyrstar by going almost exclusively spot price if memory serve me, when zinc prices were very low overall.
https://iceberg-research.com/2019/10/08/what-really-killed-nyrstar-nv-shareholders-have-a-strong-case-against-nyrstars-board-and-trafigura/
Actually, appears they paid less than spot! GC may be difficult, but Trafigura appears to be corrupt at heart.
I don't believe our board is as bad as Nyrstar, but if GC can get 159 at major contracts, then its likely we will obtain a lot less. Prior to the pandemic, spot was not a horrible idea and maybe the board took a risk that didn't pan out as planned.
Kind of glad we haven't had an update on the contract. I believe spot price hit its low and we should improve now.
Anyhow, can't remember the point I was trying to make other than bad contracts can be made
Totally true that a bad contracts can be made without any bad behaviors or being incompetent but still, it's appear that here, we might be in front of a contract that are illegal to the law. Once a contrat is recognized as illegal, it's just get voided, dropped. And if this contract is recognized as illegal, then a search for prejudice can be made and if there are, a compensation must happen.
You see the portrait. If we have, let say, an overpay and a loss of earnings of... let say, 10 % since 2015 so 379 800 000 USD, we could get in a way better position to get trought this low TC time... Getting essentially out of dept... That kind of things.