Thursday, October 11, 2018 11:10:45 AM
MS has long stated that his goal is to sell scandium based on the value to the end user. With that plan it is not smart to publish your sales price, provided you can do so within anti-trust regulations as you don’t want customer A to know what customer B is paying. This gives Niocorp more leverage in other negotiations.
It’s also possible, if not likely, that the agreement is for a percentage of Traxys sell price and not a flat rate, or at least a combination of the two so that Niocorp gets a cut. I’m sure Traxys sells metal to aerospace with a higher premium than the sporting good sector so it is important for both companies to maximize profits in both spaces. You can’t do that with even margins across the board.
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