The $15/T will just be an add on cost to the sell price WFE charges the JV. So the net effect its only a small operating cost for the JV which results in a marginal increase in total operating costs, effectively a tax deduction, at the same time reduces profit ever so little with WFE portion of the profits as 50%.
Against the current sell price of $36,000 for cobalt, let’s say for 80% of that $28,800, for 30-40% cobalt hydroxide quality which the company reported per July announcement, the additional $15/T feed cost is not much. That $15/T included in 1% grade ore can translate to somewhere around $150 reduction in profit for each partner per tonne of hydroxide sold.
It’s not a concern in my opinion and I’m sure the bean counters would find it reasonable. The prospectus will tell us more all this will highly detailed I would expect.
