This was the study to make or break the project. Unfortunately...

This was the study to make or break the project.

Unfortunately it was the latter.

When I first invested in the project 2015, it was under the premise of a low capex and good resource that will grow its legs untill 2018, for an investor to put the company on the map. 2018 being the year one of the largest cobalt producers in Katanga was predicted to go back into production, which will level the highly speculated cobalt prices back to the standard.

As many of you already know, the hype around cobalt in the last two years was mostly sparked by the speculated "cobalt cliff" in the emerging battery industry, with which prominent author John Petersen I had the pleasure of communicating considering our australian juniors and his outlook wasn't encouraging.

In the battery metal industry (lithium and cobalt for that manner), as seen with GXY, NMT, PLS, the offtake agreements and funding from China (the largest growing market in battery and EV production) are the ones that decide which junior gets it and which does not.

China has increased from the 2006 controlled 23% of the world's refined cobalt supply used in battery production to about 50% by 2016. Unfortunately it has no interest in developing the australian cobalt industry, as seen with the massive funding it has poured into the majority acquisition of the Tenke Fungurume Mine, worlds largest cobalt resource. This trend of investing in the african mine sector will most certainly continue, regardless of political stability or the unethical approach to labour.

Because of the mentioned reasons and the very disappointing scoping study, I have decided to sell my shares.

Good luck to the holders.