Cobalt deal provides valuation metrics

This is a deal for 1300 tons per year for 10 years + 20% of the cobalt price on date of delivery.

https://www.mining-technology.com/news/vale-completes-690m-voiseys-bay-cobalt-streaming-deals/

And when when delivered, an extra 20% US$ on the current value of cobalt on the day.

https://www.reuters.com/article/us-...nadian-companies-to-sell-cobalt-idUSKBN1J72IA


Goldman Sachs comes out saying  "buy commodities for current market cycle"

https://www.cnbc.com/2018/07/05/gol...commodities-says-trade-war-little-impact.html

Nice reading

https://investingnews.com/daily/res...esting/cobalt-investing/cobalt-market-update/

Back to Vale's deal.
So, if WFE was in production. For every 1,000 Tpa Cobalt, a valuation could be US$705 million (530 million/75% as vale deal for 75% of production) + 20% of cobalt price at date of delivery.
For a 2,000 tpa cobalt, (no credits for Cu) could this be a US$1.4 MC within a year? 3,000 tpa US$2.1 billion

Battery and EV companies have withheld buying to date it appears, and the market  view is plus $100,00 ton in 2nd half of 2018.

New supply is still 18 months to 2 years away.  Vale to ramp up end of 2019

WFE likely to be new supply for 2018 and first cobalt producer on the ASX. Thats quite a feat.