CLA (ASX) Ann: Positive Scoping Study Completed on Opuwo Cobalt Project

Originally posted by phuket guy: ↑

Cosmoterios.- Why do I want to attempt to suggest some board moves?

Look im waiting at Phuket airport to pick up my mountain biking mates- but their flight is delayed. So ill post my thoughts here while waiting. This is all my opinions and explains roughly what Im attempting to promote in organising a shareholder liason group -and Im not doing this in a malicious or hostile way against management -far from it- so far it seems all parties I'm talking to agree it all makes sense. If anything I just want to help nudge the process along and ensure schedules etc... This is a long post (as often) it sums up my thoughts and is the jist of what ill be letting all shareholders who contacted me know.

Again- These are all just my own persoanal opinions.

The board are the original board for a Perth junior. IMO We need to get some new guys on who are more connected in the International Cobalt market - this may mean one or two 2 guys stepping aside and new more influential people coming on who can better and introduce the company to more Cobalt players and potential buyers/partners for the company

Opuwo is now proven to be a big strategic international resource. Irrespective of the cobalt price today. If you believe that in the next decade -or decades- the cobalt demand will outstrip supply (and more ethical and reliable sources will be required) then Opuwo is a Colussus in this new cobalt world.

The big boys (mainly miners) IMO are be quite happy to buy a proven reserve like Opuwo now with a view to developing it over the coming years so as to be ready for production in the mid 2020's when the so called "cobalt cliff " and shortages are projected to really hit. Then they can hopefully operate it for decades thereafter.

They, unlike the many Ozzie smaller holders now are not thinking about tomorrow morning but are planning strategically their business'es for the next decade or so ahead and they have deep pockets and chunky cashflow.

These are the people who will buy Opuwo now. I personally believe that they will happily pay bewteen 150 - 300 mill USD for it as cheap looking forwards. Remember from my /our calcs I believe (as do many other shareholders) that with a bit of a higher cobalt price (hopefully coming in 2020's) a mine on Opuwo could be able to produce about that much profit or more every single year for decades for the new owner. This is exactly what the big boys need for their on-going long term strategic development. They don't want to stuff around with small mines going to all the effort to build and then just operate for a few years -why bother? they all want big reserves to go in big and run for many years or decades. You all know that. IMO They also dont even care over next few years if theres some current oversupply in the Co market. They will not be producing anyway. If they buy now They will be developing the mine until least 2023/24 production anyway IMO. They have forward thinking CEOS and planning and investing and moving to where the ball is going to be or expected to be in a few years not where it is now - just as any good ball player Knows - Just like BB did wen he took on this project.

IMO A price tag of 150-300 mill USD -which others In the know in the cobalt industry also see as very fair and reasonable - even at these cobalt prices - (and more if its higher). Thats aprox between 200 and 450 million AUD- which (if no more dilution or cash raisings in CLA occur before the sale) is approx 25-45 cents a share. And thats imagining the bad case (which market does now) that the SS is showing that at these Cobalt levels today Opuwo is pretty marginal. -but unfortunately we dont know those figures yet .

But The scoping study is ready now and we are clearly told by the Co the ASX and the consulatnts (or it would not be allowed to be said in the ASX announcement) that the mine is viable to progress already, even though they cannot yet show us the figures now cos BB etc screwed up its release. So Opuwo would seem to be ok to sell already to a big buyer. Thts what I and my investors group have been waiting for. Any Big buyer can now sign an NDA look at the figures and then make a bid. (and I would presume Opex /Capex figures could well be hardened up and hopefully iterated and improved and look more attractive as they move forward into the PFS stage.)

I personally dont think we shareholders want to wait 5 years for production to begin and cobalt cliff to happen (certainly all or a majority I speak to think that) we want to get a sale done ASAP now. Its now a JORC proven asset thats proven viable to mine and ready to sell. This is what happened last week after our long wait .

I think any sniff of a bidder getting serious and this share price will rally like hell- you all know that these things usually leak out into the market no matter how quiet they are meant to be kept. And IMO this could happen Anytime from now on - I dont know when - nor does anyone yet. but I personally believe it will happen sooner than expected.

So to answer your question - I believe we shareholders should now advise BB to reshape the company for a quicker sale as he moves forward developing the resource to PFS.

Just to me personally this means:
- 1. Getting more internationally cobalt connected directors on the board to help facilitate the sale and possibly removing a couple of existing guys who have run their course.
- 2. Appointing a global investment bank ASAP to help make the sale (but also to support the market price and produce research etc)
- 3 expend more effort and budget in promoting a one off B to B sale not just getting more shareholders to buy- a good sale will make plenty new shareholders show up in a real hurry!!!
- 4 Absolutely not doing a weak offtake deal now as they announced they may be discussing now -as there goes shareholders upside-.
- 5. Maybe getting a more PFS producing competant Director/advisor on board??
- 6. Initiating possible savings from having completed the SS development phase to support the extra expenditure on this new make-a-sale-phase. Remember we do not want to do another cash-raise before the sale and dilute shareholders further. Such savings involve should look at moderating one or two of the directors salaries (BB's) which IMO believe are pretty rich for a non-producer . Especially one that has just lost 70% of its value in last few months even though only partly from mismanagement .

I have personally proposed all this to BB already. He says he is onside with most these ideas and they are already going that way, But I am gathering toghether ( or representing) a large group of shareholders now who also want to try to nudge management in that direction more briskly.

If there is any silver linning to this recent fall debacle IMO its that now i do believe a majority of shareholders would currently accept a lower price for a buyout -like anything over the old high in the price. This has also made the company much more attractive to the prospective buyers.

I think the current share price does not reflect the significant value in the strategic asset we have in Opuwo and the potential rapid upside move we could now see at any time as a potential buyer materiallises. This was not the case last week before the SS was completed. SP may even drift lower as scaredy cats run for the door (they may also be right) but there wont be much chance to get in (or back in) when hopefully a big fat bid gets announced to the market.

Enjoy the AGM and ask questions about these issues please. Ill be sweating it out on Myy MTB thinking of you . Good luck all.

Expand

Just wondering if the "big boys" are still interested in CLA because now they could get it much cheaper.

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Last 1.0¢		Change 0.000(0.00%)		Mkt cap ! $25.71M

Open	High	Low	Value	Volume
1.0¢	1.0¢	1.0¢	$27.99K	2.799M

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17	11301939	0.010
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Price($)	Vol.	No.
0.011	1327662	3
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0.013	5218663	9
0.014	880100	3
0.015	2733666	4

Ann: Positive Scoping Study Completed on Opuwo Cobalt Project, page-677

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