It is really quite simple. Cobalt prices drive the value of this...

It is really quite simple. Cobalt prices drive the value of this company. If we go back to 2021 company presentations, they were saying that with a cobalt price of $US30/lb the COB NPV was around $700m. For a company at this stage of development their value could be say 20-30% of the NPV although some would argue higher and others lower. The same slides showed that the NPV dives to just $100m when cobalt prices drop to $20/lb.

Today, cobalt price is at $15/lb! At those levels COB isn’t worth anywhere near the $100m MC it currently sits at. With the decarbonisation drive worldwide, everyone thinks it won’t stay at $15 but will it rise to 20 or 30 or even higher is the gamble. All the cobalt stocks are down at the moment; the real question is which will survive to see the upturn? Has COB got far enough through the development phase to secure its future and realise the benefits of a potential upsurge in cobalt demand in the coming years?

Imo I think it is overpriced at the moment for a sub $20/lb cobalt price, but can’t help think that we will see prices jump in 2024 towards the $30 mark again. If it drops to 20c I will be in topping up as I can’t see it staying down here for too long.