Just a few points I really like from Joe in his interview with Matt Bohlsen.
Cobalt Blue CEO Joe Kaderavek talks with Matt Bohlsen of Seeking Alpha/Trend Investing
What is Cobalt Blue currently working on in regards to your projects and what stage are you at? Please comment on your resource and its potential?
Mr Kaderavek shares his views on cobalt supply and demand, as well as his thoughts on the cobalt sector as a whole. Mr Kaderavek gives an update on Cobalt Blue as well as his 5 year outlook for the company: “Thackaringa will be the largest single source of cobalt outside of Africa producing 4,000t of cobalt (~20,000t of cobalt sulphate) per annum.” Mr Kaderavek was former Head of Resources at Deutsche Bank equities/investment management, with a resources and energy storage technology focus. He also worked at PricewaterhouseCoopers doing operational reviews and strategic assessments across mining, minerals processing, railway and port facilities throughout Australia, North America and Europe. He also worked extensively on secondment to BHPB and Rio Tinto. Finally, an international consulting role focused on renewable energy/battery storage technologies.
Cobalt Blue is a pure-play cobalt focused energy solutions company, incorporated on 26 August 2016 for the express purpose of advancing the development of their Thackaringa cobalt mining operation in New South Wales, Australia. The Company is also seeking to invest in energy storage (battery) technologies that may complement the production of cobalt in commercializing battery and associated energy storage technologies.
Currently completing Pre-Feasibility Study ((PFS)) for delivery mid-2018. With >20,000m of site drilling combined with >800kg of metallurgical processing testwork producing high purity (20.5%) cobalt sulphate (battery industry) for acceptance testing. Bankable Feasibility Study ((BFS)) by mid-2019. The Thackaringa resource is large with 55Mt of inferred resource containing 50,000t of cobalt and clear potential to add multiples of this baseline. Our scale is simple, Thackaringa will be the largest single source of cobalt outside of Africa producing 4,000t of cobalt (~20,000t of cobalt sulphate) per annum. Our economic target is to achieve a cash breakeven down to US$10–$12/lb, well below the long term market clearance price.
What do you see as the main catalysts for Cobalt Blue going forward, and where do you see your company being in one year?
A big year ahead. Produce initial battery grade cobalt sulphate by January. Customer purity confirmation by February with follow up commercial visits. Resource upgrade end Q1 (to 40Mt Indicated) then PFS due mid year. For BFS testwork our view is to produce 1–2 tonnes of cobalt sulphate and ship for production testing globally. Now, that’s a major market moment for us. We’ll be there within 12 months.
Do you think Cobalt Blue is currently fairly valued, undervalued or overvalued by the market?
Where do you see your company and the stock price being in 5 years? Our view is that achieving milestones will take care of the share price. We have no interest in valuing COB against other explorers as few will see development. My view is towards production and creating a world class cobalt operation. 20,000t of cobalt sulphate currently equates to $US280m p.a. How much of that we capture as free cash flow is the key question.
Lots of upside
DYOR
Expand
