Centaurus Metals has signed binding agreements to sell nickel concentrate from its Jaguar project in Brazil to Glencore and Chinese battery materials maker CNGR. The two buyers will also invest $20 million each, bringing the first five years of planned output under contract.
At a glance
- The two new deals are worth about $900 million over five years at current nickel prices.
- Each buyer will take at least 20,000 dry tonnes a year of concentrate grading about 30% nickel, from early 2029.
- Centaurus is now working on senior debt and a final investment decision for Jaguar.
Background
Jaguar is a nickel sulphide project in Brazil being developed by ASX-listed Centaurus Metals. Nickel sulphide concentrate is a feedstock for nickel refineries that supply battery makers and stainless steel producers. An offtake agreement is a contract to buy a mine's future output, which helps a developer raise construction finance.
What happened
Centaurus Metals has signed two binding nickel concentrate offtake agreements for Jaguar, Small Caps and Mining.com.au reported on October 28. Glencore and battery materials maker CNGR have also each committed $20 million in equity.
A CNGR subsidiary and Glencore AG will each buy at least 100,000 dry tonnes of concentrate over five years, starting in the first half of 2029. Each contract covers at least 20,000 dry tonnes a year grading about 30% nickel, or roughly a quarter of expected annual output.
Deal terms
The new deals add to an earlier Glencore contract for another 20,000 dry tonnes a year. Together, contracted deliveries cover concentrate containing about 22,500 tonnes of nickel a year over Jaguar's first five years, priced against the London Metal Exchange cash nickel price.
Both investors will buy Centaurus shares at A$0.425, a 5% premium to the 20-day average price. The first $12.5 million from each comes after signing, subject to Chinese approval for CNGR, and the remaining $7.5 million each depends on shareholder approval and a final investment decision.
What it means
The deals give Jaguar buyers for its early output and part of its funding before construction. Managing director Darren Gordon said the next few weeks will be decisive, as Centaurus puts in place the final funding needed for Jaguar and a final investment decision.
Our read
Outlook: neutral. Jaguar's output is years away and small compared with global nickel supply.
What to watch
- Centaurus's senior debt financing and final investment decision on Jaguar.
- Chinese approval for CNGR's investment.
- Shareholder approval for the second equity tranche by January 31, 2027.
For information only, not investment advice.
Nickel price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-28: Centaurus signs nickel offtakes and equity deals with Glencore and CNGR.
- 2027-01-31: Deadline for conditions on the second equity tranche.
Supply Drivers
Jaguar would deliver concentrate containing about 22,500 tonnes of nickel a year from 2029.
What could lift prices
- Buyers are paying to secure future nickel sulphide supply.
- Jaguar's first output is not due until 2029.
What could weigh on prices
- A new nickel mine moves closer to construction.
- Contracted deliveries add about 22,500 tonnes of nickel a year once Jaguar starts.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Brazil | Medium | A new nickel mine moves closer to a final investment decision. |
| China | Low | Chinese battery materials maker CNGR secures future nickel supply. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Battery Manufacturing | Positive | A battery materials maker secures a new source of nickel concentrate. |
Who gains, who loses
- Centaurus Metals: It has contracted sales for Jaguar's first five years and up to $40 million in equity.
- Existing Centaurus shareholders: New shares issued to Glencore and CNGR dilute their holdings.
Other ways this could play out
- If debt financing closes, Centaurus could make a final investment decision within weeks.
- If Chinese approval or shareholder conditions are not met, part of the funding could fall away.
Price risks
- Either buyer can end its contract if the first shipment has not happened by the end of 2029.
- Lower nickel prices would reduce the value of the offtake deals.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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