Thank you Bluesamurai: From what I read there is no change to what was announced earlier in Jan- March. This means: 1) Immediate lifting of a provision exempting licence holders of compliance with the new code for 10 years. What a cold shower = you can't trust the DRC government.
2) New 50% tax on so-called super profits. Super profits = income realized when commodity prices rise 25% above levels included in a project's bankable-feasibility study. This is what would hit Glencore and Co the most as their BFS did not forecast the current Cobalt prices.
3) Royalty on cobalt will be raised: that point is still not very clear as of today : back in January it was clear it would go up from 2% to 3.5%. But in the event the mineral was reclassified as "strategic" then the rate could go to 5 or even 10% a five fold increase. We need to wait a few days.
In anywise the new scenario in DRC is going to give cold feet to any new investor there.
Australian projects will clearly benefit from this situation and COB in particular. Bad news for investors in Congo, good news for those with COB ,safely located in Australia.
We are in for exciting times and the PFS is around the corner....
COB Price at posting:
$1.14 Sentiment: Buy Disclosure: Held
