I think the possibility of a severe stock price fall(of course for who how much a severe drop means) in such scenario almost inevitable.
On the other side for exporation companies credibility and predictability should be much more important than lift more a scoping study its just a "preliminary release" of showing this project potential they dont have to die for make the NPV number 10-20% better, at a PFS or BFS is much more reasonable such move but not here. also dont forget its a relativelly young company with this Cobalt resource, and so relatively unknown for most of the investors how they deliver on their promisses and thats key in such companies.
I expect 5MTPA SS study, and maybe with another option at 3MTPA?! I dont expect 1MTPA because if the numbers are compelling they will get support in the range of 3-500 AUD range for sure,and thats what the company expect as well.
Additionally also at a sulphate project economics of scale plays a big role as everywhere. build an infrastructure for 1 MTPA wouldnt be that economical, exspecially as management and the shareholders would want and expect expansion later where probably many items will be build for larger capacity at stage 1, so in phase 2 and 3 dont need to build another water pipe another transformation station and no idea what else in that case would be wastefully duplicated at work.
CLA Price at posting:
12.5¢ Sentiment: Buy Disclosure: Not Held
