COB 3.90% 8.0¢ cobalt blue holdings limited

Valuation of COB

  1. 102 Posts.
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    Thought I'd begin a new thread to discuss the valuation of COB and different opinion's people may have that I could adjust my valuation with.

    I have completed a NPV of the BHP up to 2030 (8 years) on the assumptions of:
    -3500 tonnes per annum of mined cobalt beginning 2025
    - Cobalt average price of USD $28/lbs as found in COB investor presentation
    -Sulphur of 300,000 tonnes mined and sold per annum beginning 2025
    -sulphur price of USD $146/ tonne
    -All in sustaining costs of USD $12.5 beginning 2025
    -CAPEX investment of AUD $560m in 2024 see investor presentation
    -straight line depreciation of 10% per annum
    -shares on issue with all options converted ~233m
    -discount rate of 10%

    *This does not include waste stream project but I will attempt to make a separate NPV in a while with this project. Any input regarding this project in terms of size, CAPEX, and timeframe would be appreciated. I know that it would triple the Co resource but all other assumptions regarding CAPEX and AISC will be wild guesses based on the BHP.

    I have gotten a NPV of AUD $1,442,247,458 for the BHP which equates to a share price of $6.17. This is roughly in line with COB's own project valuation.

    Now for dividends, assuming the company will begin paying dividends in 2027(when CAPEX has been re-couped) a lower and upper bound of 30% and 50% of profit distribution has been calculated.

    2027
    30% of profits distributed, dividend of $0.40/share
    50% of profits distributed, dividend of $0.67/share

    2030
    30% of profits distributed, dividend of $0.54/share
    50% of profits distributed, dividend of $1.07/share

    Assuming a high dividend yield of 10%, in 2030 we get a share price between $5.40 and $10.70, which is inline with the NPV of the project.



 
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