The company is currently working to prove up their resource with further drilling.
Upcoming catalysts include:
By 30 June 2018 - PFS to be released. My estimate is for an unrisked NPV8% of A$1.08b.
2018 - Possible off-take agreements.
By 30 June 2019 - BFS.
Current market cap is AUD 111m. Investors can view my interview - "Cobalt Blue CEO Joe Kaderavek Talks With Matt Bohlsen Of Trend Investing."
My current target price for end 2020 based on reaching a 4,000tpa production target and selling @ USD 35/lb is AUD 5.18 or 5x higher. This increases to AUD 6.59 or 6.3x higher if they make it to become a 5,000tpa producer. If we use current spot prices then respective target prices are closer to AUD 7 and AUD 9. Clearly at AUD 9 there is a ~9 fold gain on current prices.
I view Cobalt Blue as the best valued junior cobalt play and an outstanding buy opportunity still. The reason is they have a sulphide ore (lower CapEx), a way to massively reduce processing costs (lower Opex), a growing resource, and an exceptional valuation due to the early stage.
COB Price at posting:
$1.04 Sentiment: Buy Disclosure: Held
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