Top Cobalt Pick, page-3

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Stretch83

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18/05/18

15:26

Post #: 33194794
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Originally posted by insideflickpass ↑

Extract from seeking alpha Matt Bohlsen article - original article was posted in March 2018

Cobalt Blue Holdings [ASX:COB] (OTCPK:CBBHF) - Price = AUD 1.04
Cobalt Blue are optioned to 100% own the Thackaringa cobalt-pyrite sulphide project in NSW Australia. They are buying in from Broken Hill Prospecting [ASX:BPL].
Cobalt blue currently has a global Mineral Resource estimate of 72Mt at 0.0852% cobalt [Co], 9.3% sulphur & 10% iron [Fe] for 61,000 tonnes contained cobalt (at a 0.05% cobalt cut-off). Note that 72% of the Mineral Resource is now in the Indicated category. Cobalt Blue is targeting a resource of 100 million tonnes at 0.084% cobalt for 84,000 tonnes of contained cobalt. That will support a 20 year operation at 4,000 tonnes pa, and make Cobalt Blue a top five global producer. It is quite possible this will move to a 5,000tpa production target prior to commencing production around 2021 all going well.
Cobalt Blue will have a low cost of production due to their ore type and a new way to process it using gravity separation. The company states - "The heavy sulphide separates easily. We therefore only need to process 20% of mined ore (sulphide) in a refinery." The graph below shows the huge advantage this potentially gives Cobalt Blue.
Most of the laterite deposits will need to refine the ore at 0.1-0.2%, whereas Thackaringa will be refining concentrate at 0.4-0.5% cobalt.

Source
The company is currently working to prove up their resource with further drilling.
Upcoming catalysts include:

By 30 June 2018 - PFS to be released. My estimate is for an unrisked NPV8% of A$1.08b.

2018 - Possible off-take agreements.

By 30 June 2019 - BFS.

Current market cap is AUD 111m. Investors can view my interview - "Cobalt Blue CEO Joe Kaderavek Talks With Matt Bohlsen Of Trend Investing."
My current target price for end 2021 based on reaching a 4,000tpa cobalt production target and selling @ USD 35/lb is AUD 5.18 or 5x higher. This increases to AUD 6.59 or 6.3x higher if they make it to become a 5,000tpa producer. If we use current spot prices then respective target prices are closer to AUD 7 and AUD 9. Clearly at AUD 9 there is a ~9 fold gain on current prices.
I view Cobalt Blue as the best valued junior cobalt play and an outstanding buy opportunity still. The reason is they have a sulphide ore (lower CapEx), a way to massively reduce processing costs (lower Opex), a growing resource, and an exceptional valuation due to the early stage.

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What's with all the redaction? You saying it is all incorrect now cause the only lines unredacted don't tell us much
COB Price at posting: $1.15 Sentiment: Buy Disclosure: Held
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Last 5.4¢		Change -0.001(1.82%)		Mkt cap ! $24.02M

Open	High	Low	Value	Volume
5.4¢	5.4¢	5.4¢	$19.44K	360.0K

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No.	Vol.	Price($)
6	173588	5.3¢

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Price($)	Vol.	No.
5.5¢	113166	2

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No.	Vol.	Price($)
6	173588	0.053
10	365172	0.052
4	295090	0.051
14	1074382	0.050
2	55530	0.049

Price($)	Vol.	No.
0.055	113166	2
0.056	158000	2
0.057	32439	2
0.058	115580	3
0.060	105395	3

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