Contango Holdings PLC - Zimbabwe-focused natural resource development company - Responds to recent speculation regarding its offtake agreement with AtoZ Investment Pty Ltd.
Explains its subsidiary, Monaf Investments, entered into an offtake agreement with AtoZ in June 2022 for the sale of 10,000 tonnes per month of washed coking coal for no longer than $120 per tonne. Says this contract remains in effect. Notes that the offtake arrangement is not exclusive and, as a result, says it has the right to deliver coal to an alternate buyer.
Adds that since entering the agreement, it has received ‘a number of approaches’ from other parties interested in offtakes for coking coal as well as coke and other by-products. Says recently it has been focusing its effort on completing discussions with an unnamed ‘global multi-national company’. Notes these negotiations are ‘commercially sensitive’ and are expected to reach a conclusion as it approaches first revenue ‘imminently.’
Current stock price: 4.20 pence, closing 5.0% higher in London on Thursday
12-month change: down 29%
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