Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-3

Cobalt prices weakened over 2022, ending the year below US$20/lb. A temporary weakening of fundamentals was the primary factor of this price deterioration. On the demand side, global EV sales continued to grow at a record pace, with EV sales making up around 50% of global cobalt consumption (with analysts forecasting this increasing to 60% by 2030). Consumer electronics currently comprise 45% of cobalt consumption in batteries, with a large proportion of that demand stemming from China, which struggled last year, largely because of the country’s sustained covid-zero policy. Meanwhile, large-scale expansion of major projects in the DRC pushed global supply growth close to 20% in 2022, an unsustainable annual increase in any commodity market. We believe that the market will revert over the course of the next 12 months as a result of the prevalence of supply side risks in Central Africa combined with escalating global legislation that will escalate EV penetration rates faster than currently expected. These trends are likely to push cobalt prices back above their long-term averages with significant market deficits looming into 2024+. We note consensus expectations forecast a ~30% uplift in prices this year from current spot levels. QUOTE
Cobalt price to rise should stabilise again back to more acceptable levels in the future IMO