Over sold on over reaction, page-26

QT, your comment about being profitable today is factually wrong. I'm just calling it out for what it is. Production costs in Finland currently far outweigh sales (for reasons we all understand) and they've had to make a negative adjustment on their inventory value as well.

As for the shareprice performance, personally I'm hugely impressed (and pleased) it has held up so well after what was a disappointing quarterly. I think the key thing is that the market evidently expected it to be disappointing, so there weren't too many nasty surprises. Any news about China rolling back their Covid-zero policies are going to be very supportive for the share price, so fingers crossed the rumours floating around start turning into facts! (see: https://www.bloomberg.com/news/articles/2022-11-01/chinese-stocks-in-us-post-scorching-rally-on-reopening-rumors).

I do however feel very patient about this company, I simply would have preferred them to be less bullish when the cobalt price was mooning. However on the bright side, it's probably been a lesson learning for the Kokkola arm. But with a lot of debt on the balance sheet, and another asset looking to come on in 2023, there will be (and in fact already have been) questions from retail and institutional investors alike about where the funds are going to come from. What you and others see as 'capping' in the share price, is far more likely the market behaving like a market: knowing that this business is currently quite highly leveraged, and will likely need further funding to get SMP up and running at some point. That, to me, is partly why it's not being bid up. Nothing nefarious (Occam's razor strikes again).

Cheers