Key points
- Binding Product Sales Cooperation Agreement signed with Indonesian seaweed trader PT. Kebula Raya Bestari
- BP8 intends monthly procurement and on-sale of 200 metric tons of seaweed
- Indicative price range of USD1,050-1,500 per metric ton based on Kebula's recent sales
Full summary
BPH Global Ltd (ASX: BP8) has announced that its wholly owned, Indonesia-based subsidiary PT BPH Global Indonesia (BP8 Indonesia) has entered into a binding Product Sales Cooperation Agreement with Indonesia-based company PT. Kebula Raya Bestari (Kebula) to assist the Company with the supply of seaweed to Indonesia-based customers. Under the agreement, Kebula will provide accounts management and sales logistics services including warehousing, processing and delivery of seaweed to BP8 customers. BP8 Indonesia's intended monthly procurement of seaweed for sale to its customers is 200 metric tons, with specific monthly quantities to be finalized each month by mutual agreement. The Company anticipates the monthly average prices for a metric ton of seaweed will range between USD1,050-1,500, based on Kebula's historical monthly sales over the past six months. BP8 Indonesia's initial focus will be on customers who process seaweed to produce Carrageenan, a family of natural linear sulfated polysaccharides extracted from red edible seaweeds and widely used in the food industry.
Guidance
BP8 intends monthly procurement and on-sale of 200 metric tons of seaweed, with an indicative price range of USD1,050-1,500 per metric ton based on Kebula's recent sales.