It's a simple enough concentrate plant which according to the reports released has performed above expectations. Just a milling plant to produce concentrate with a bit of tinkering along the way really. Current market and the battery space in general is softer than 9/12 months ago, both were heading up, both have headed down, it's not rocket science that stocks like COB get whacked. The long term outlook for renewable energy and storage has not changed, its brillient. I don't like to see these big product swings but they seem to me to be as much to do with DRC/China entanglement and the Wests late arrival to the Find-Your-Own specials metals table.
I am not so sure the West is going to be fooled again with that old DRC/China price setting, it could get to a give away price and I still see the likes of a COB doing fine as an alternative supply & location, the West has changed. The cobalt price cannot stay low, and hopefully it won't go crazy high again. The players now coming out talking of a massive DRC stockpile are exactly the same players who talked of supply drying up about this time last year, neither are true for me.
COB will be working away on the job of supply networking, more problematic in current market for sure, but I believe a deal and a good one will get done. Some (not traders of course) may even say now is not the best time to announce a deal, later in the years could be better,
Cheers Phil.
COB Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
