Cobalt players list, page-6

I tipped ANW on Friday so will just copy and post my FA from that here:

Summary:

ANW have 2 tin projects and a cobalt project. Production has already commenced at one of the tin projects and first revenue is due this quarter. There is substantial profit margin in these projects with the current tin price, which has seen good gains over the past year. Their 100% owned cobalt project (Mt Cobalt) was historically mined for cobalt and ANW have already drilled back in November with good, high grade hits. They only have a bit over a quarter's worth of cash left but they have the first revenue from their tin projects due this quarter and no debt. Assuming everything goes to plan, there is no requirement for a placement anytime soon.

The MC should be higher on startup of the tin projects and ~50% surge in tin price in the last year alone but obviously the cobalt project could be the catalyst for a big move. After seeing the runs on some other stocks that have merely mentioned cobalt and are months away from the first drill hitting the dirt or have no other projects projects that support the market cap, I think this one has potential for decent returns.

MC = $19.9m (@ 0.012)
Cash = $472k (31/12/16)
Forecast cash burn for next quarter = $350k*

Mt Cobalt Project (100% ANW):
To avoid any confusion, I'll start by pointing out something minoil noticed, this is NOT the same Mt Cobalt as the CHK project. It's this one:

"The Mount Cobalt Lode was discovered in the early 1870s and is located eight miles south-southeast of Kilkivan. Production commenced in 1886 and further production was recorded in 1903 although the size of the mine development indicates a much greater tonnage than the four tons at 4% cobalt recorded (Brooks et al, 1972)."

"[Mt Cobalt] was historically the centre of mining for high grade, cobalt‐manganese rich mineral asbolite (asbolite is also mined in the Democratic Republic of Congo, New Caledonia and Zambia). Historical records for the Smith mine (approximately 200m south of Mt Cobalt itself) report mining a lode approximately 7m in true width to a depth of 25m with a grade of 7.5%Co, 2.5% Ni and 18%Mn1 . For comparison, typical economic grades reported for cobalt deposits range from 0.1 to 0.15 percent .

Previous exploration undertaken at Mt Cobalt (from 2007 to 2010) focussed on the extensive nickel mineralisation (garnieritic‐saprolite) beneath the laterite on Mt Cobalt itself. Whilst secondary cobalt mineralisation is associated with garnierite (a nickel oxide which is distributed broadly at grades of approximately 0.5% nickel), little exploration has been undertaken on the primary asbolite cobalt mineralisation. Until recently, no exploration had been undertaken at the historic Smith high grade cobalt mine south of Mt Cobalt."

It's worth noting, this isn't a tenement ANW rushed out and grabbed like a game of musical chairs - cobalt tenement edition, they were granted this tenement in August of 2012. ANW have already done their own drilling and plan to do more. The first results were released in November last year, 9 RC holes were drilled and 5 hit significant cobalt grades. The grades ranged from 0.11% to 0.84% and they were all shallow:

9m @ 0.22%Co & 1.00%Ni from 9m
13m @ 0.12%Co & 0.46%Ni from 8m
1m @ 0.13%Co & 0.42%Ni from 3m
19m @ 0.45%Co & 0.90%Ni from 18m; including 7m @ 0.84%Co & 0.83%Ni
5m @ 0.11%Co & 0.63%Ni from 31m
7m @ 0.12%Co & 0.40%Ni (0.26%Coeq) from 42m

Granville Tin Project (100% ANW):
Production started in August last year and first revenues are expected this quarter. They're also in the process of getting regulatory approvals for expansion of this project, targeting 550tpa. Cash costs are ~A$15.6k/t and current tin price is A$25.5/t so around $5.5m annual profit which they intend to use for additional exploration of Mt Cobalt and for the CAPEX of the flagship tin project (Taronga). Excerpt from the recent presentation:

"Significant potential to extend the Life of Mine
• Drill likely extension down dip of skarn mineralisation
• Exploration targets within existing Mining Lease
• Over 100 tin prospects within 25km radius of the processing plant"

Taronga Tin Project (100% ANW):
A Pre-feasibility study was completed in 2014 and found the following:
• 23Mt of Probable Ore Reserves supporting a 9 Year Life of Mine producing 2,800tpa tin in concentrate
• Technical risk is low with open cut mining and simple metallurgy −
• All inclusive cash cost A$22.2/t (current tin price = A$25.5/t)

Stage 1 of the project has a tiny CAPEX, targeting $2.5m, which they plan to fun with profits from the Granville project.