Pertinent market/industry news/articles, page-25

There are different opinions, and hard to now what to know what to belive. One big questian is if the project will be economic.

I will paste part of a conversation from CEO.CA, just to illustrate it.

" Almost a BGS 2.0 type release. Assuming $40 cobalt, over half a bil capex for a 25% IRR. NPV kind of meaningless with these numbers. Pretty ugly on the surface. Market reaction seems about right."

"Absolutely pathetic assumptions from $arl....this project as it stands is never getting built. No bank is going to lend on this.. Just as teranga demonstrated, if arl.ax are using $8/ni they will need to demonstrate they are robust at a price 20% below current prices, teranga managed to get borrowing, but had to hedge at $1330 during construction phase, and banks also wanted to see once in production they could operate at $1100 gold, not the $1300 or $1250 I think teranga used in their studies."

"Here is what most people missing: CLQ cash cost after cobalt credit is $1.4/lb vs ARL cash cost after cobalt credit is $0.4/lb. So it is 3.5x lower than CLQ - exactly same difference in cobalt price assumption. This difference is highly misunderstood. Considering CLQ fell 50% after PFS and then doubled in SP, I believe ARL may present a good opportunity."

My own take is that investors got scared about the high price of nickel and cobalt used, especially nickel. Maybe also the low production used and also sell on news of course.