Ann: Jervois to acquire Freeport Cobalt for US$160 million, page-7

You are entitled to buy one share at 44c for every 1.56 shares you hold (should you decide to participate).

I'm stuck in meetings all afternoon here in Tokyo, so will read and digest everything later tonight.

Briefly, very much a see the forest for the trees type situation here.

44c & 89% dilution makes one wanna barf, despite the rights issue, but that is if one can't see the forest for the trees.

The was all about the goblins (cobalt) and is a transformational announcement. It has expedited everything and instantly transformed them into the world's second largest producer of refined cobalt outside of China. This is the forest.

US$160m for Freeport Cobalt looks cheap when you consider they had earnings of US$83m in 2018 when the Co price was rocketing.

Even at a US$15/lb Co price, they had earnings of US$21m.

So, we have paid 7.6x earnings when the Co price was at its low or 2x earnings when it was at a high price.

It all comes down to the Co price & the margins. If you accept that the Co price is going higher, this will look like a master deal. One needs to crunch the numbers at various price points to work it all out. I will sit down later tonight and do that.

LT, this looks like an incredible deal and explains the strong institutional support.

Bullish AF.