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47.0¢ sunrise energy metals limited

This makes much more sense, the other explanation seemed...

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331 Posts.

64

04/07/18

07:56

Post #: 34122036
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Originally posted by You3OAte ↑

Not correct Sally.

For 31M lbs of cobalt, Wheaton pays $390M upfront AND a an annual production payment that is calculated using cobalt production and either 18% of 22% of Metal Bulletin cobalt price. Wheaton are not buying cobalt at a 78% discount. They are buying cobalt for $390M plus an annual production payment. The production payment totals nearly $250M up to 2034 (see Vale press release on this transaction), which is the year in which 31M lbs of cumulative cobalt production occurs. 2034 also happens to be the year that marks the end of Voisey's Bay mine life (again, see the Vale announcement). So, Wheaton are paying close on $640M over 14 years to secure 31M lbs of cobalt, not $390M.

Of course, Wheaton generate revenue from their cobalt purchases. I calculate the NPV(8) of this transaction to be circa US$125M, with an IRR of 13%. All contingent upon a long term cobalt price of US$40/lb. Using Cleantec's DFS price of US$30/lb, forces a negative NPV(8) and a sad IRR of circa 8%.

Doesn't seem like a particularly good deal to me but good luck anyway.

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This makes much more sense, the other explanation seemed ridiculous.

CLQ Price at posting: 80.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 47.0¢		Change -0.060(11.3%)		Mkt cap ! $44.66M

Open	High	Low	Value	Volume
52.5¢	53.0¢	45.5¢	$50.14K	102.0K

Buyers (Bids)

No.	Vol.	Price($)
1	1285	45.5¢

Sellers (Offers)

Price($)	Vol.	No.
49.5¢	9463	1

View Market Depth

No.	Vol.	Price($)
1	1285	0.455
2	23000	0.450
1	1500	0.445
1	1959	0.440
3	17200	0.400

Price($)	Vol.	No.
0.495	9463	1
0.525	4751	1
0.530	9879	1
0.535	20000	1
0.545	25000	1

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