Ann: BHCP and Refinery Update, page-52

First 52 Last

Share
Profile

Follow
Zhc003

3,527 Posts.

880

14/03/24

13:33

Post #: 72884209
Share

Originally posted by GH1971: ↑

@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.

Expand

If they achieve Sovereignty Seal status with the EU, there could be funding options there. (there were vague mentions in previous interview whilst the EU CRMA was still being discussed). End of 2024 they are looking announcements for the "strategic project" status - and a mid year milestone. Mid year June is also when Grants will be awarded (which were open between Sept 2023-->Feb 2024).

I am told this transaction practically maxed out the Japanese budget (commitments); so failure can't be an option imo as they foregone other opportunities to work with COB.

Yes absolute chaos for SH it they chose the dilution route, without waiting for EU options.

COB Price at posting: 15.5¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

What's causing the cost-of-living crisis, and how to navigate it

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint