Well if the scoping study is positive, with all the current action in the cobalt space it's looking like a perfect cobalt storm in our favour. See the compelling Bloomburg article below from last week (you've probably all read it).
If the scoping study proves clear viability then things will happen fast, because we have some very clear advantages over all other cobalt juniors in terms of speed to mine and low cost CAPEX/OPEX. In this case I think a new JV structure and resource extension is inevitable, and will come quickly, and off-takes could follow quickly after than (I believe discussions with potential partners have been taking place for around a year now). And it's the offtakes which really propelled the MCAP of lithium juniors in early 2016, when the lithium buzz was about where cobalt is now.
My guess for SP Catalysts:
Scoping study - the big risk/reward point, but not necessarily when the SP takes off.
JV with Creasy - potentially a big re-rate. Will certainly add a lot of credibility and marketability.
Early offtakes - I think the likely big re-rate. Could be soon, or in six months from now.
PSF...who knows. With lithium juniors all the SP action happened well before the PFS. Buyers saw probable viability with scoping studies and locked-in supply.
From Bloomberg article:
"...with [cobalt's] annual demand set to increase 34 percent until 2026 as electric cars gain a bigger share of the global auto fleet, according to CRU Group."
"...“Cobalt is the next big thing,” Commodity Capital co-founder Dana Kallasch said by telephone on Tuesday. The firm’s Global Mining Fund has returned about 70 percent this year, beating 213 peers, according to data compiled by Bloomberg."
https://www.bloomberg.com/news/arti...tric-car-commodity-accelerates-as-prices-soar
Exciting times.
Solarbat
Add to My Watchlist
What is My Watchlist?