Ann: Cobalt Off-Take Discussions Advance and DD Update, page-37

A few weeks old and cobalt has now surged to USD55k PMT but you get the drill.

Analysis
This joint venture provides shareholders with a near term cobalt production asset, three highly prospective hard rock copper-cobalt projects at a time when cobalt prices exceed US$41,000 per tonne and major mining companies are aggressively acquiring cobalt projects.
With the Kipushi plant designed to produce 4,000 tonnes of cobalt annually, this equates to US$164 million in revenue per year at US$41,000 per tonne, not including copper credits.
Not only does this deal give Cape Lambert access to near-term production assets but to the US$20 million Kipushi processing plant and a mining fleet including trucks and heavy equipment already on site.
Off-take discussions for the sale of cobalt, copper and zinc concentrates already underway.
The joint venture will have established in-country management team already supported by Cape Lambert’s significant African operating experience in South Africa, Republic of Congo, Sierra Leone, Cote d’Ivoire and Guinea.
Cobalt, as a commodity, has a bright future and with this transaction and the proposed joint venture, Cape Lambert is well placed to benefit from significant forecast demand and price increases in this commodity sector.
The projects are located in the world’s major cobalt mining region, with some of the highest-grade cobalt mines in the world that account for ~50% of the world's cobalt reserves and ~60% of global cobalt supply.
Given this location, investors are leveraged to both the near-production assets and exploration upside potential.
Cape Lambert shares are already up 45% year to date and this deal is expected to be a significant catalyst for the company.
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