Strandline announced it has signed a 5-year offtake agreement for 100% of its Rutile production out of the Coburn mineral sands project in WA. The agreement is one of the last few pieces of the puzzle for the project which now has a buyer of over 90% of its planned early life production, totalling an estimated $US600m in revenue secured.
It’s still a project, pre-Final Investment Decision and will need around $150m to get it up and running but the offtakes have significantly de-risked it. A funding package is in the works, and hence remain long. Shares were initially over 30% higher, currently trading up around 12%.
It’s high risk but we like STA and own it in the Emerging Companies portfolio.
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