Ann: First Cobalt Assessing Restart of Canadian Refinery, page-13

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11/10/18

12:24

Post #: 36083603
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Originally posted by Ashentegra ↑

Hmmmm. Gee.

The refinery needs a lot of engineering. There are many variables in this discussion: potential feedstocks with different processing needs, scale from 12t/d to 54t/d, capex from $24m to $105m and whether to produce cobalt sulphate or cobalt metal.

It isn't for us to decide which combination FCC takes on. Better brains than ours have that task.

It will need a capital raise. With the share price in the doldrums, this would be highly dilutive -- and Mr Market knows it. Off-take partners would require output to their preferred specifications and compensation for the risk they would be assuming, so I don't have high hopes of a capital finance shortcut there.

There is also the risk of an opportunistic low bid from a mining major with longer investment horizons than spec stock investors.

On the upside, the market is seriously underestimating the battery requirements for firming up solar and wind energy generators. This could be as big as EV's.

That is a whole bunch of open questions. We can all see how this could work. The hard part is getting there. A tricky path to navigate. Expect volatility.

I am seriously underwater FCC.

Ash

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Good assessment of the refinery report...With respect to off grid storage batteries, I think lithium ion will be a good part of that, especially initially and for smaller buyers...but vanadium redox is just around the corner, especially for larger companies..

FCC Price at posting: 31.0¢ Sentiment: Hold Disclosure: Not Held
1 Upvote

0 Great analysis

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