ARL 1.06% 46.5¢ ardea resources limited

Look, I'll bite, as I think along the lines as someone else,...

  1. 2,768 Posts.
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    Look, I'll bite, as I think along the lines as someone else, that you should be prepared to challenge your investments.

    ARL is a bulk-production type venture, these only interest a select few players, (like the RIOs/BHPs/S32s) that can operate on that kind of scale, and time to production can be significant. On the plus side, the share can move up fast if they take an interest and JV etc. on projects.

    Open pit mining as it would likely be initially, is a lot less complex than underground operations.

    Can ARL move up significantly in 2018? I believe it can, but it will need to attract the right sort of interest and investment, what we've seen here are mainly first-movers getting in, which is a nice place to be, and Heron investors like Greenstone that we've inherited as shareholders.

    My only concern with ARL is that it might be beaten to the punch in some ways by other operators, but there is a Cobalt deficit coming. For competitors like Glencore etc. DRC is not a stable environment in which to do business, it's always been a risky place, and with the world demanding energy metals continuously, you don't want too much uncertainty of supply around it.

    Finally Cobalt itself if it becomes too pricey can start being substituted down in batteries, so it needs to reach a happy medium.
 
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