@cobalt2025The problem they noted is they won't get project...

@cobalt2025

The problem they noted is they won't get project finance at these prices to build it. So to build and be in production in 2027 would require construction using equity only, which would mean massive dilution for us. The alternative is finish the DFS and then shelve it until cobalt price recovers sufficient to obtain funding, which would mean a likely start construction only in 2027.

If a smaller version of the project is viable at current price and they proceed with that then the DFS work to date would become redundant so finishing would offer no benefit.

If the smaller version is investigated and found not to be viable then they can revert to completing the DFS on the original basis.

The problem with with both scenarios that involve completing the DFS on the original basis (either now or after a small project investigation if that is not viable) is that if financing is not available until 2027 the DFS would need to be completely refreshed for updated capital costs at that time anyway. So a lot of rework required regardless.

They're really jammed up because of China on this, same as many of the Ni & Li miners/projects. No "good" decision available, pick the best of a bad set of choices.