The costs will be shared. And it is my understanding that they...

The costs will be shared. And it is my understanding that they are very modest.

Think less of ownership of a fixed asset & more about the sorta earnings that will be generated from this refining capacity.

To wit, at US$32/lb cobalt price, they will be pumping out more than A$100m per year in EBITDA.

In other words, if the cobalt price averages US$32/lb over 3 years, they would be able to generate A$300m in EBITDA - which is more than the acquisition price of A$271m (US$200m) for this 40% refining capacity.

How many years are these contractual rights valid for? Was it 72? Correct me if I am wrong, but 72 years minus 3 years = 69 years of ka-ching!


I've seen one modelled figure on this 40% of Coca-Cola's (no good with spelling Finnish words) refining capacity to be worth circa A$600-700m - which equates to 40c-47c per share based on 1.5 billion SOI.

Add in the ICO + SMP, etc and you can see the upside potential from here.

Cheers.