Ann: Quarterly Activities and Cashflow Reports, page-4

First 4 Last

Share
Profile

Follow
stakx

2,521 Posts.

2102

10/08/18

22:43

Post #: 34870164
Share

Originally posted by mineralised ↑

Actually the plan was to have debt financing in hand prior to negotiating offtake. This gives us a stronger position to negotiate. The DRC mining code has strict / prohibitive clauses on external debt financing and its now being enforced. So plan B is we likely need to work with one of our customers.

The convertors in Kolwezi are complete and require feed, they won't be buying feed from outside of the country. This window is not closed. Moreover I have heard from a reliable source that Toyota was in the country looking for offtake few weeks ago, this in addition to BMW I heard before.

I have 50/50 confidence of funding this year from a customer, won't deny we have been unlucky, but there are others who have sunk $50-80m a piece for plants that won't be processing anything unless they talk to us or put through mineralogically variable artisanal ore loaded with clay, with a long wet season to interfere with supply.

The exploration to date has put up three satellite sites that have potential to add the mine life. They have probably found more cobalt than all the Ca/Eu cobalt "explorers" combined, and its in a form that is treatable and complementary to the existing Kalongwe mine plan. There's more to test.

There are two major DRC expansions outside of Glencore KCC to keep an eye on, thats all you need to do, sadly they are private but I will share. I estimate both have an incentive price of at least $25/lb cobalt, realistically $30 in this financing environment and they don't have strong copper values to rely on and are reagent intensive with some commercially untested processing technology involved. That means they won't proceed if price goes lower, they will simply sit and wait. Additionally they face the same financing challenge re mining code that we do. All the other projects outside of these two are immaterial to the wider cobalt market. The cobalt market is not going to be satisfied or "all done" by the emergence of operations that can add 1-2ktpa in cobalt metal equivalent.

Finally - this is a copper project with a cobalt kicker, what really affects our NPV for stage 1 is copper price, which has been in the dumps. We will have strong cobalt revenue in stage 2, funded by stage 1.

Expand

Are you referring to Pengxin for example? Who claim "macroeconomic concerns"! Does NCZ's cobalt have any radioactive content?

NZC Price at posting: 23.5¢ Sentiment: Hold Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

ARV

Smallcap Artemis Res' jumps 23% on six digit gold grade rockchip find at Titan

OCT

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

IMA

Issues emerging as Australian companies tackle critical minerals challenge

Tonight's US CPI data could set the tone for November. What are markets expecting?

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

ARB

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

There are more pages in this discussion • 21 more messages in this thread...

First 4 Last

Add NZC (ASX) to my watchlist

Ann: Quarterly Activities and Cashflow Reports, page-4

Top Stories

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Smallcap Artemis Res' jumps 23% on six digit gold grade rockchip find at Titan

Octava Minerals joins the antimony train with high-grades on the radar at Yallagong, WA

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

Issues emerging as Australian companies tackle critical minerals challenge

Tonight's US CPI data could set the tone for November. What are markets expecting?

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Court process clears way for ARB to buy up 4 Wheel Parts business in the US

NRW Holdings inks $109M deal with BHP for works at Jimblebar

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Featured News