Cobalt $75k, page-3

That means Co is up 25% in a month, +7.1% in a day.

Price per lb is now US$34.

Price per lb used in Pre-Feasibility Study was US$12/lb.

The PFS based on the production of 3222t of contained Co per annum, years 3-20 at $US12/lb. This would deliver revenue of US$85 million approx. annually.

Updated Co production suggests 5,000t per annum. At current price of $US34/lb, this would deliver US$375 million approx.

That’s a difference of US$290million per year, every year, for at least 20yrs. At an exchange rate of US75c per 1AUD, that’s an additional $387 Million Aussie dollars every year. CLQ will pay tax on this, the remainder falls direct to the bottom line.

At tax rate of 30% this would deliver a windfall of about $271,000,000 per annum into the Company coffers.

At a conservative P/E of 8, this increase in Co price and production - on its very own - would value the Company at $2,168,000,000.

Fully diluted shares on issue is 627M.

Hypothetical share price based on increase in Co price and production alone is $2168m/626m = $3.46/share!!!

Just to reiterate, the increase in Cobalt price from $12 to 34 USD and Co production from 3222t to 5000t per annum is worth in the vicinity of $3.46 for every share on issue, fully diluted.

Wow!!!

In my opinion....
Accumulate at will (& in parcels to take advantage of any further share price attacks).

Please note this is not advice or a lecture.