2017 Cobalt boom & 2018 Nickel boom?, page-481

First and foremost, well done Matt and Co.

They have solidified for me one of the most important factors when investing into any company, being competent, diligent and honest management.

The writings were on the wall from previous announcements; strategically they pre-confirmed their findings by statements provided to market. There was going to be a significant increase in resource, this was expected – just didn’t know how much of an increase. Therefore there was no price sensitive information pre released to market, simply a conceptual/ theoretical position – there was confidence yet still seen as open ended. Very smart management!

Now that the results are known we can scrutinise the results and the area. What we have, an increased resource with a smaller footprint, as the company is taking advantage of the Cobalt sector and understands where energy is headed (not Nickel) – theoretically, understands that we are in a generational shift regarding power. Oil/ fossil fuels will always be here yet there will be another bully in the playground over the next decade – the question is which bully would you like to stand next to when the gloves come off and the rocks start flying!

Back to our resource. Take note that we have not received a Black Range increase; this is the biggest area regarding Cobalt and has numerous high range targets. This in my opinion will bump us over the 100k of Cobalt, CLQ eat your heart out! Not sure when we will see these results but we will move higher over the next week – please note I did not hit my 68c target last week but I did pick the time-frame for the announcement; this was very smart timing by management. Few will understand why but seriously well done!

As the deposit is more contained and higher grade the costs for development do lessen, I can’t as at this stage say by a huge $ amount yet I believe that the focus recently on processing our ore has certainly provided positive results. On that note the majority of pyrite, limonite, and other oxide type of Australian deposits have their own costing and processing issues – Ardea’s strength is its tonnage at a high grade; the CAPEX will not be an issue going forward, I believe they can get this down to under $500m. Of course this is conceptual at this stage; just want to get it out there as going forward this will be shareholders biggest question/ concern.

Anyway there is a great deal more that I’m pondering with Ardea Resources at present, this space is going to get very attractive over the next 3 months.

Regards, NL.