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Australian Mines continues off-take negotiations with SK Innovation

The off-take is for 7 years of battery-grade cobalt sulphate and nickel sulphate produced.
frame from video of Stuart Peterson
Proactive spoke with exploration manager Stuart Peterson earlier this week

Australian Mines Ltd (ASX:AUZ) continues negotiations with SK Innovation on the long-form off-take contract for battery-grade cobalt sulphate and nickel sulphate.

This sulphate is to be produced from the AUZ’s wholly-owned Sconi Cobalt-Nickel-Scandium Project in North Queensland.

As per the original early-2018 term sheet, SK Innovation will purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Sconi for 7 years with a +6 year option.

According to the recently released bankable feasibility study (BFS), this equates to revenue of $512 million per year in average annual sales of cobalt sulphate and nickel sulphate.

READ: Australian Mines expects to finalise Sconi cobalt-nickel offtake this quarter

Previously, SK Innovation was entitled to a commercial-in-confidence buyer discount on the base price.

Notably, SK Innovation could exercise this price discount option within three months of the release of the BFS, which has now lapsed.

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