Ok let's challenge it.
BHP have already shown interest in the deposit- the thing that flatlined that was the collapse of coal and iron ore etc prices, commodities in general and so they were forced to retreat on all fronts for the last decade.
Too expensive will bring substitutes? Over time?
Yes.
In the next decade? Quote the guy out of the castle "tell em they're dreaming".
Nomura is chasing this like a bloodhound and hey, if the home of most battery etc production , ( yes china bla bla but most Chinese production itself is led by Japanese hands- 26years this year of being directly involved with them talking there but what would I know? ), in the world can't see the next decade then hey don't know anything.
The DRC is not the magic pudding bowl- all good things must end eventually. The extraction at depth becomes more expensive over time, the local thugs get greedier and eventually the camel says that's one too many straws on my back.
We love to talk about batteries and yet 50%~ of world cobalt production goes to the military and surprise, surprise, not for batteries.... yet.
So 50% of world production is devoted to servicing the world's second oldest beast- war, don't for a second tell yourself that world militaries are contracting- they are expanding more rapidly as per volume of equipment faster than they have since the second war to end all wars.
What do we think 1-4 hundred billion dollars US of arms will entail in just one order to the Saudis for example? Hundreds of billions of dollars of batteries for wallow talkies? No.
It will be in super alloy intensive units such as aircraft, manned and unmanned, tanks, armoured vehicles and other specialist equipment.
Retaining magnetic properties at 1,100 degrees celsius kinda comes in handy for things like super alloys in jet motors etc.
Never forget either, to note the timing of when those who like to 'challenge their investments' do so.
Lastly- this isn't a cobalt play. There is nickel, gold, zinc and more than likely other goodies as well. Lithium players and tenements have sprung up like weeds, cobalt on the other hand? It's only just starting to see growing explorer interest.
ARL Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
(20min delay)