To reply to a few questions:
-I have no doubt COB is about to get the 70% interest as it was subject to the delivery of the PFS and this was done on schedule. Just need to wait for the verification process to end. BPL has no interest in not allowing COB to move forward. How will they get their 2% royalty on Cobalt output (which would be a key earning source) otherwise?
-About the IP sharing issue, I am not 100% sure but I would think that once COB reaches 100% ownership of the project it will be the sole owner of the IP. That is what the announcement says for me. Anyway this is a small issue as the big money is on COB producing Cobalt Sulphate from it own Thackaringa project and v likely from processing the ore from some of its neighbors.
-Finally about Take Over: yes right now COB is dirt cheap. If I had $ 60M I would buy it over right away! If you compare to last year, this project has been vastly derisked thanks to the PFS which I want to emphasize again was conservative. I see only upside from here. One just need to read the Anncmts/ CEO letter to shareholders. At this stage LGI is v clearly in the lead to partner COB but to simply take over I am not sure. VV likely, an offtake agreement with financing ;Possibly a streaming agreement for all or a portion of the Cobalt ouput. But we can’t exclude a streaming agreement with an outside party OR a TO by one of the global miners eager to enter the Cobalt supply market at a current very low cost and no worries on the political/ regulatory sides.
-From the quarterly report, Letter to shareholders and others:
-COB’s partner LGI will be doubling its capacity of EV battery within the next few years = perfect for COB.
-Very interesting to notice that a dual pricing is appearing: Cobalt produced from non DRC mines is fetching a premium. Excellent for COB future mining in Australia.
- COB attractive to North Asian Investors: most Japanese and Korean companies by now are scared of HPAL process projects as they have suffered cost blowouts by the billions of $ and big delays in reaching (if ever) their planned capacity. The fact that COB does not require this process and will treat the ore at only a fraction of the temp and pressure required in HPAL process makes it a very interesting prospect to foreign investors. Most retail investors do not fully understand this aspect yet but hopefully they will before the big boys move in.
-Worth noting was the mention that COB met with not only end users but also traders : This would likely refer to the giant Japanese trading houses the “Sogo Sosha” which is a good sign as they have very deep pockets. Close to $50B in their war chest right now after record profit recently and some are on the prowl for sound metal projects. See https://www.reuters.com/article/us-...-record-earnings-boost-appetite-idUSKCN1FZ0D8
-Finally COB spent less than 1 Million in the quarter and has almost $10 Million , which makes me v confident towards COB’s financial needs for the BFS
To conclude COB is on the right path with a competent and honest management in safe Australia. Once the current "noise" is over it will get back to its deserved much higher value. I believe more serious investors are just starting to come in now as they have real datas to base their decision. That was one of the goals of the mgmt with the PFS. Also investors do not have to worry about Nickel/Copper prices contrary to other projects.
COB Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
