Let's say $30 per pound. 4000t cobalt/yr = 8.8mil pounds Cobalt.
Estimate cost of product = $10-12/lb so let's assume upper end of cost, that's $18 / lb margin
That's 158.4m US/yr. Currently for 14yrs, but with further resource upgrades likely bring it to o 20 yrs. With a 10% discount rate that gives an NPV of US $998.55m = AU 1.3billion at current exchange rate.
After the PFS and the institutional investment and offtake that follows, COB's SP will comfortably shoot through $2 in my opinion. But let's assume it is funded at $2.
That's $5.65 per share... (And at nowhere near current Cobalt prices).
There is an EV arms race on right now and companies will be scrambling for Cobalt sources outside of China.
COB Price at posting:
$1.27 Sentiment: Buy Disclosure: Held
