Contango Holdings PLC - natural resource development company with operations in Africa - Enters into an offtake agreement with AtoZ Investments Pty Ltd, a coal trading company based in South Africa, for Contango’s initial coking coal production.
AtoZ agrees to purchase 10,000 tonnes per month of washed coking coal produced at the Lubu Coking Coal Project in Zimbabwe at the prevailing Minerals Marketing Corporation of Zimbabwe market price, which currently of $120 per tonne. AtoZ agrees to handle all subsequent logistics and marketing of the coal.
Contango adds that it expects the MMCZ coking coal price to rise, given the current macro-outlook and global coking coal price environment. This, it explains, would provide greater margin to its operations.
Current stock price: 5.95 pence, closing 27% higher in London on Tuesday
12-month change: down 6.3%
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