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.
WFE Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held