Ann: Potential Project Financing, page-11

It’s always a risk when you release a PFS without a sufficient resource. COB has payed a heavy price for doing this. Especially as the capex was high and needed a longer mine life so as to amortize the cost over more tonnes. The IRR needed to be 25%+ so either longer life and or refinements to tailings and power etc prior to the release. What’s done is done. Would the price have fallen more with a delay? CLA has pushed back to Q4. If the share register was airtight management might have considered that, looks like there are plenty of day traders and speculators involved.

The good news is that there will now be a string of positive announcements on the way to the BFS. Let’s hope cobalt recovers as per analysts predictions. At these prices I would prefer COB not to have to dilute to complete the BFS. Between now and production we need strong hands.