Cobalt/Nickel/Gold news, page-3

Hi Solar and all,

I found myself perplexed with the drop in the LME Cobalt price.

On thinking through the dynamics in the market for the LME price being supply from somewhere and delivery(demand) to somewhere whilst all the time in the off-take arena deals are being done to secure supply. As I think our MTJV would be working towards.

Seems to me the LME inventory expansion(as mentioned in our quarterly) and thus showing a lack of demand for LME cobalt tells me LME is failing and not an indicator of price at this time.

I think the London Metal Exchange has been overwhelmed by the Chinese gaining supply from the Congo. The Chinese are now able to provide excess supply to whoever wants Cobalt metal without going through LME thus controlling the price that LME can offer.

These tactics put pressure of the likes of our JV to launch further protecting the supply from the Chinese controlled Congo supply.