@RDL writes: https://hotcopper.com.au/posts/34788183/single Its...

@RDL writes:
https://hotcopper.com.au/posts/34788183/single

Its actually not a pure cobalt play.
At the 0.12% cutoff ( JORC table most reasonable crossover between grade and tomnage) the ratio is 72.5% Cobalt and the remainder copper and zinc, being ~27.5%.

Don't get spooked out of your shares now folks.

In 2020 or 2021 when this is production-ready Cobalt markets will be extremely tight and likely in deficit. At prices like 80, 90, 100k USD/t our resource is VERY economic. Over 3% CuEq at the 0.12% Co cutoff, with 44mt available. And closer to 4%CuEq at the higher Co grade cutoff of 0.16%, where there are currently 9.6mt available. And we'll be adding to those tonnages over the next while.

Even at current MB pricing of 75k usd/t we are talking 2.5-3% CuEq at the 0.12-0.16% Co cutoff mark.

I've done the numbers.



We have done the numbers few times before!

Here's a small reminder a nice one from @binwood with conservative built into it

I'll let you do the forward progressive calcs for a 2/3/5/6mtpa plant
Oh we left out zinc as well !!

https://hotcopper.com.au/posts/29151791/single

0.8 being recovery
0.15% and 0.5% being assumed for Cobalt and Copper grade

For every 1,000 tonnes of ore CLA process they will produce 1,000 x 0.80 x 0.0015 = 1.2 tonnes of cobalt. They will also produce 1,000 x 0.8 x 0.0050 = 4 tonnes of copper. At $60k for cobalt and $6,900 for Copper at current prices that is $60,000 x 1.2 + 6,900 x 4 = $99,600. Now assuming opex is $30/t of feedstock (using my 1.5x multiplier) that gives CLA margins of $69,600.