Hi. What you find is companies that have very large resources (nickel / copper and cobalt) but they’re low grade, they tend to highlight how cheap their company is when viewing certain financial metrics. Market cap + debt - cash = enterprise value or “EV”. So a favorite ratio is to show how low their EV is per ton of Nickel / Copper in the ground. Comparing this value between companies is meaningless if you can’t extract those tons at a profit.
What matters is the internal rate of return (“IRR”), net present value (“NPV”) and the location (infrastructure and ease of permitting etc) of a project. To be world class a project needs all of those things. Based on a front end processing technology of a simple crush, gravity separation and floatation, COB achieves a substantial ore grade improvement and therefore a high IRR etc. It is critical that the PFS validates the scalability of that technology to processing 5Mt of ore and reducing the back end throughput to 1Mtpa.
COB Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
