Largest cobalt resource with lowest valuation, page-227

@orionwoo @accaeric

One stock that came to mind when reviewing this deposit is the stock that I got so wrong, and Acca got so right (hindsight haha).

EMH - lithium with a massive low grade deposit. If you track back, when Acca and I originally discussed this it was february/march last year and the price was around 15c.

And the risk with this stock was very similar to the risk facing ARL. Large deposit with limited metallurgical testing, an unconventional process proposed but favourable mining conditions.

If you track the run back, there was an announcement on the 31st of march, 2016 which showed they'd approached engineers to develop their flowsheet and process and it seemed like a throwaway announcement.

Yet if you track the run up backwards, you'll see that as a moment it gained traction and now they have a relatively defined process... with high recoveries not seen on a Mica project before and even though costs are going to be higher than simple flotation on other projects... EMH has a lot more easily accessible material, it has been proven to be able to pre-concentrate at a coarse grind, which saves energy and now they appear to be competitive with the other projects..

The shareprice is $1.10.

The only difference between now and then, is risk. They effectively lowered the project risk.

This is the same path ARL needs to follow in this project.