Key Info on COB, page-2

To complete the overview of the company::
-March 5th Announcement: Completion of Calcine and leaching tests: further derisking
After learning in Dec. the excellent results of the 1^st phase of the process (the concentrate = 0.4-0.5% grade) resulting in COB having to treat only 20% of the mined ore, the calcine and leaching phases tests results are excellent ( 96% of Cobalt extraction on a reliable basis) . “The key process steps have been validated”
To top it up COB is now producing samples of Cobalt Sulphate = the end product and commercial meetings will be held this month for the Cobalt Sulphate but also for the Co-product, the Elemental Sulphur.
-Finance wise: Not yet any hard indication on CAPEX but an amount of Au$ 350M has been mentioned by a research house, lower than other Co projects . No official figure from COB yet; this would come at the PFS in June.
As for OPEX here are the results from Mmoore earlier this month:
In a recent presentation COB’s CEO reaffirmed the goal of production cost of US$ 12/lb and latest spot price is around US$ 38/ lb. With production target of 4000 tons of equivalent Co metals / year we are talking big operating profit here.: 4000 tons =8.8 Million pounds x US$ 25/ lb= US$ 220 Million/ y = AU$ 280 M/ y.
EBITDA = A$280 M but COB has a Royalty commitment of 7% (5% SR plus 2% NSR payable to BPL). So EBITDA is close to A$ 250 M per annum. This number translates into:
1. PAT = A$158m pa
2. FCF = A$178m pa
3. FCF Valuation = A$178m x 10 times = A$1780m
4. FCF Valuation = A$5.60 (PFDS after Capital Funding: Debt/Equity: 60%/40% at A$0.60)