Sulphur prices aside (just for a moment) the NPV looks negative!! The plan to start the oxide project first for cashflow to fund the sulphide project is sound only if the fist project is cash flow positive!! The model they used today is not conservative at best to have any confidence in the oxide project imo.
Further to last post
Congo
Yes not the best place to operate in Africa but has come a long way with mining investment since the last civil war ended. Anvil was first mover status and has opened up two successful mines and planing 60ktpa SXEW plant atm. Hard work and not without gov disturbances but it can and is being done.
The tenke project in the congo(Freeport) Production: Construction is in progress with operations targeted to begin in 2009. The average annual production is expected to be about 250 million pounds of copper and approximately 18 million pounds of cobalt. http://www.fcx.com/operations/AfricaTenke.htm
Zambia
Caledoniamining Nama cobalt project, Likely some small delays with this as with most projects but no Congo arguments here. http://www.caledoniamining.com/pdfs/CALPres19052008.pdf
Supply demand for Cobalt
Add supply in 2009 from Nama and Tenke then work out the % of new production compared to current cobalt market.
How many new batteries is that to absorb the production increase?
With these two mines (or just Nama...) alone in 2009 how can you justify $50/lb out to 2011.
CMR Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
