Ann: CNJ: Mt Thirsty Cobalt Project Scoping Study, page-61

Agree this scoping study was poorly presented. Not so much the study itself, as there are strict ASX guidelines around how they must present data. The problem was with lack of context in the covering announcement. This is a scoping study - not a feasibility study and they should have made that clear. Mind you, they probably feel no duty of care whatsoever for those who have left the register in ill informed panic in the last couple of days.

"What is a ‘scoping study’?
Clause 38 of the JORC code defines a ‘scoping study’ as:
...
an order of magnitude technical and economic study of the potential viability of Mineral Resources. It includes appropriate assessments of realistically assumed Modifying Factors together with any other relevant operational factors that are necessary to demonstrate at the time of reporting that progress to a Pre-Feasibility Study can be reasonably justified.
...
Scoping Studies are commonly the first economic evaluation of a project undertaken and may be based on a combination of directly gathered project data together with assumptions borrowed from similar deposits or operations to the case envisaged. They are also commonly used internally by companies for comparative and planning purposes."

The last line above is the point - it is largely an internal document that works out whether it is worth doing a feasibility study and of so provides technical information for that study. Its not intended to provide a "bankable" analysis.

For more see ASX Scoping Study Guidelines

The figures that have spooked the herd are there to estimate a NPV. They have to be whole of mine life estimates. They have to have to be realistic, based on what the experts say. They are not there to prove financial feasibility or that the mine will make money in the first 5 years.

The figures they do quote that would feed into the feasibility equation are spectacular - at current cobalt prices and exchange rates (see my post on Friday).

The informed traders are laughing and lapping up cheap shares - the only thing slowing them down is making sure they don't seem to eager. Just goes to reinforce a valuable lesson - there are huge opportunities if you can stay rational when sentiment becomes irrational.