Hi munchy360. Welcome to the competition. You need to have the...

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ammie

10,720 Posts.

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12/07/18

08:54

Post #: 34290891
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Originally posted by munchy360 ↑

Hello all STT'ers - this is my first tip here I believe.

STTCOMP NZC FA LONG
MC $71m
SP 25c
SOI 284.4M

NZC is a DRC based Copper/Cobalt junior. Has the highest grade Cobalt deposit on the ASX, The deposit is shallow, open pit, sulphide. NZC is in a JV with Ivanhoe. NZC has plenty of cash, over $10m. Currently drilling and has plenty of drill ready targets to extend the current LOM. Stage 1 only requires $53m USD to get up and running with stage 2 planned to be funded by stage 1. Stage 2 will incorporate a stockpiled cobalt resource of 900kt at 0.62% Cobalt. Thats 5x the grade of the next best on the ASX. The recent feasibility study highlights how undervalued NZC is. For the US$53M Capex, has an NPV of US$130M post tax with an IRR of 76%. Compare that to the aussie laterite projects., Stage 2 NPV of US$340M and IRR 91% funded from stage 1. Top 20 hold approx 84%. Hauyou cobalt hold 15%, they are the worlds largest cobalt chemicals manufacturer.

Recent cap raise at 25.5c. Investing in DRC stocks isnt everyones cup of tea however you cant deny the grades or the future demand for cobalt for the EV industry so for a little risk a lot of potential reward. SP downside is a lot less than SP upside IMO.

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Hi munchy360. Welcome to the competition. You need to have the header on the first line or else Freehold's automatic program won't pick up your tip. No text above the header. Could you please re-post your tip with the header on the first line? It's just a quick copy and paste. Thanks in advance & good luck with the tip!

XAO Value at posting: 6,300.2
9 Upvote

1 Great analysis

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