While I am glad that the SP went up today, I am not super thrilled at the Ancmt. CDU is far away in Queensland = high transportation costs, not in the pink of health and dependant like Havilah on Copper prices. When I bought COB it was for its 100% exposure to Cobalt and counting on its own mine, not to be dependant on copper prices from other mining companies to get its Cobalt ore supply( even if only partially). Beside this if COB processes their concentrate/ore, this will be on a profit sharing basis. When the PFS came out with the LOM of 12 years brokers and LTH calculated that it was v likely it would go to 20 y and as a result the projected NPV figures reflected that. However if to reach a 20 y life of the refining plant COB needs to rely on CDU and HAV ore/ concentrate then the potential outcome won't be so profitable. I was under the impression that the new areas labelled T1 to T4 in the COB Nov 2017 Ancmt would be the source of the extension of the LOM to 20Y but I am not so sure right now. Anyone would like to add/ correct me? This is important to me as the extension of the LOM is by far the largest factor in the potential increase in NPV.
COB Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
