From my understanding nobody has done with Cobalt what COB is planning to do. Spending more time testing things makes perfect sense. My understanding has always been that the final investment decision would not happen in mid 2019. Only the BFS. Regarding the concentrate, as per COB's releases, concentrate would only fetch 30-35% of Cobalt metal prices = around $ 9/ pound at current prices.
With a strip ratio of 3.6/1 right now on Thackaringa, i do not think it would be profitable. Maybe ore from HAV and CDU but this would need to be tested. At the current SP the market I believe the market has priced in all the "bad news".
For me right now the question mark is the global trade situation + the huge divergence between the Emerging markets stock markets performance and Wall street + 10 y bull market. Cobalt will be needed for sure despite Elon Musk's now infamous sentence.
Investors also need to keep in mind not only what can happen in Congo with the December presidential elections (delayed by 2 years) and its potential impact on Cobalt prices if things do not end up well but also what is happening within Australia: BHP has just started producing Nickel Sulphate at a mini plant in Perth on Aug 15th . It seems it would start producing Nickel Sulphate at its refinery by its Nickel West mine next year and is advancing plans to potentially double capacity to 200,000 tonnes, , which would create the world’s largest nickel sulphate plant. Cobalt Sulphate would be a byproduct. How much would this add to the overall world market is not stated yet but my guess would be minimum of 10-15K Cobalt sulphate/y based on the 200K Nickel Sulphate output. Any thoughts anyone? https://uk.reuters.com/article/uk-c...ar-eying-cobalt-on-battery-boom-idUKKBN1HP11Z
I think COB can go on its BFS path with its cash pile, then as good news come along and the SP rises again, it can get funds from LG or others to finish the BFS job and tests to reach the final decision to mine. Right now a CR at such depressed levels does not make sense nor is needed anyway .
COB Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
