C7A 0.00% 1.4¢ clara resources australia ltd

Hey guys. With all respect and thanks for keeping other holders...

  1. 208 Posts.
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    Hey guys.

    With all respect and thanks for keeping other holders in a loop, don't let your enthusiasm take control of your rationale.
    Positive cobalt grades would be def amazing and could bring a re-rate, but that would be rather due to current investors' sentiment and them stupidly frothing over any mention of cobalt such as in case of AUZ these days.
    Cobalt mining is way more expensive and quite different to tin mining where you need just a mill and a gravity/magnetic aperture. Cobalt usually requires high-pressure/high-temperature S-acidic leaching facility which costs tens of millions to set up, has higher environmental impacts = costs on tailings and other facilities, and makes capex rocket. We would be talking several hundreds of millions to start production. Plus, compared to Cu or Ni, cobalt is rather rare and although some grades might be fantastic, total volume isn't usually big. Hence, it is rarely mined on its own. I think there are only two places in the world where their primary production is focused on cobalt. That's how difficult cobalt is. It's too dear to mine on its own.
    So, not saying it's impossible but it has to be reflected by sufficient Co prices, higher volume of ore, additional metals as by-products, etc. I know of a place (it's not a secret) where diamonds are. But too deep, too small to mine that's it's not worth it. The PFS could easily come up with sth like $500m, 18mths till production, 9 years LoM and you will see investors fleeing like rats.
    Check some pure cobalt players and their announcements for a comparison.

    MB
 
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