I am a new investor and also new to mining stocks, I am trying to understand some basics so appreciate any replies.
AUZ (Australian Mines) has a off-take agreement with SK Innovations for the supply of 12k tpa of Cobalt and 60k tpa of Nickel.
Cobalt market price is around $88k per tonne and Nickel is about $13k per tonne.
So to understand the sale value of this off-take, is it as simple as multiplying the market price per tonne X the supply agreement? Resulting in Cobalt sales revenue of over $1B per year ($88k x 12k) and vice versa for Nickel?
*Provided they can produce the supply amount once in production.
