Assuming 3% feed and 20,000tpa processing per month (almost full...

Assuming 3% feed and 20,000tpa processing per month (almost full plant capacity).

Cheapest I have been able to see 3% feed for is $500 - $1,000 per tonne. Lets run with $500.

$500 per tonne x 240,000 = $120,000,000 USD for annual feed at 3% assumed cobalt. Divided by 50% JV share = $60,000,000

240,000tpa @ 3% with recoveries of 65% = 4,680 contained cobalt (upper end of what the company quoted in DeBoss' debrief so lines up).

4,680 x 80% payability = 3,744 tons of payable cobalt (company said between 75 - 85% of LME so splitting the diff here).

Revenue = $187,200,000 from cobalt based on these figures and $50,000 per tonne assumed LME from the company. Divided by 50% JV share = $93,600,000

This excludes processing costs, sustaining capex and company admin costs etc. The main contigent factor here is processing costs (sustaining capex and admin costs can possibly be kept relatively minimal if the plant is working as desired).

Variables:

Cobalt price, higher the better obviously. Very leveraged to this (like any cobalt company).

Processing costs, not included at this stage but always a big part of it. They will confirm this with initial metallurgy tests.

Actual cost of ethical ore feed net of Kumi fees - Ive gone with the lowest I could find for 3% cobalt and dont know if thats tagged as ethical.

Transport costs to seller potentially.

Just some musings based on the figures provided from the company.