COB needs to increase scale in order to be taken seriously.

Cobalt Blue is a company made around a relatively small mineral resource comprising 118 Mt at 859 ppm cobalt-equivalent, for 81,100 t contained cobalt. The resource is located in a prime mining jurisdiction, has a proactive management and owns a very interesting intelectual property that allows the transformation of relatively low cobalt concentrations, into a final cobalt product produced at a competitive price.

The IP, the jurisdiction and the management, made me invest in a mining company on the other side of the world. The war with BPL almost made me change my mind and sell everything. Fortunately the war was resolved in favorable terms, Co prices recovered, but SP didn’t quite reacted as expected.

In my opinion the main problem of the company is scale. As Joe Kaderavek states COB is a half-giga factory mine, and he his absolutely right. In my view he already identified the problem, and is quietly trying to come up with a solution. The size of the company, measured in potential production, must at least double in order for the market take COB seriously and price It appropriately. The solution can be achieved by organic expansion of the Broken Hill Tenure, or by a deal achieved with its neighbors ( HAV? CCZ? Other?). Judging from the price action in the last days I would say that is quite possible that such a deal might take place sooner rather than latter. That could be the catalyst everybody is waiting for.