A vivid act of the imagination sees $3.6m as enough to restart the refinery. $1.6m doesn't - unless a customer or government sees a strategic necessity. For either, $24m is small beer.
I also posted this view on Stockhouse Canada, prompting this insightful reply:
RE:Is the refinery now a GO?
Ash,
There was no announcement of the refinery going forward. However, knowing the flow sheet works is an important first step. It sounds as bough they’ve been in talks (financing, off takes, supply agreements) and after yesterday’s announcement, those talks are sure to become more serious. What is this second placement you reference? There was one placement of $1.6M. The placement announcement stated it was for refinery work and general purposes. However, Mell said in a recent video that they had a investor who wanted to see the drills still turning at IC. The plan was originally to slow things down, but the little extra money keep things moving at a moderate pace at IC. They’ve been drilling.
Below is a video of a Mell interview where he explicitly says they’d like to finance the refinery through non-dilutive avenues such as debt and off-takes. He also says they’ve had lots of interest from DRC miners looking to diversify. He says the plan would then be to use cash flow from the refinery to help fund the advancement at Iron Creek.
Make no mistake folks, Iron Creek is still 5+ years away. This will be the money-maker. And by most expert forecasts, it would be coming online during a major cobalt deficit. I don’t believe the Co price will shoot back up to $40 any time soon. But it is coming (2024 and beyond). A recovery into the mid twenties over the next year or so seems likely. Anyone looking to get rich overnight here is likely going to be disappointed (unless of course you are throwing some big bucks at it). Near term catalysts are a refinery restart announcement with funding via a debt/off-take combo. I could see a CAD$200M market cap (Currently $73M) with the refinery in action. If Iron Creek ever comes online, FCC could EASILY be a billion dollar company. They are sitting on an absolute beauty of a deposit and if the cobalt demand unfolds the way most experts believe it will, the closer they get to production there, the SP will rise steadily. BUT if FCC is able to reach its full potential, you will NOT realize full value for 5 + years.
Just wanted to caution any new-comers. This isn’t a overnight multi bagger. I could see $200M MC -hinging on the refinery, the Co price, and the generalmarket sentiment towards Cobalt. If they can bring the refinery online with minimal dilution to the shareholder, you’d be looking at a triple up in 18-24 months. https://youtu.be/6RqgkykXvBk.
FCC Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
