Why so Quiet (And flat), page-4

Hi @Tee_J_Live, hi all,

Personally I've been in Barra for a few years now and haven't sold a share - I'm just taking a bit of a break from regular Hotcopper use. I see massive SP upside from both Barras' Cobalt and Gold projects, and having been at the last two AGM's and spent time talking the projects through with directors, I can say that I'm impressed with them, and happy with how things are progressing (though faster would always be better!). It's all just a matter of patience. Barra directors are dot the i, cross the t types - they are highly experienced, careful operators who quietly build solid projects - the very opposite to glossy website building promise-the-earth types. They are also always up for a chat. Sean's appointment (the new CEO) is particularly impressive. Look at how tight with money Barra has been over the last 5 years (getting through the worst of the downturn without a capital raise), then consider that they have just appointed a new highly experienced project developer on a high salary. They wouldn't be doing this unless they were certain they'd be keeping him busy.

In the case of Mt Thirsty these are my thoughts:

The SS was solid - produced by high calibre external consultants. And the results are about to get a LOT more impressive with new extraction rates. Being one of the lowest Capex cobalt projects, and one of the only pure play projects around, and simple in design (off the shelf parts = quick to build compared to regular HPAL) makes it, in my view a VERY attractive prospect to an off take partner, and especially for Stream funding (which the JV have indicated they will ideally obtain). Would the likes of Panasonic be interested in offering debt funding to the JV, to be re-paid in just a few years, to guarantee a decade of ethical cobalt - I think they probably would.

Both BAR and CNJ directors (though many, many funds/trusts etc) own a high % of the these two companies - fits well with stream funding (debt), rather than selling off large chunks of the companies/JV to fund the mine.



That famous miner/geologist/investor Mark Creasy owns 1/3 - 1/2 of the resource (the bits the JV doesn't own) is absolutely fascinating and largely missed by the market. At the BAR AGM the directors indicated that both the JV and Creasy see the resource as eventually be developed as one (see my notes from the AGM) and that they are in regular discussions.

How will this unfold? Who knows. What we do know is that the directors of both companies, and Mark Creasy know what they are doing, they understand the opportunity, and they have a lot to gain from moving as fast as they possibly can. My guess is that there have been discussions taking place with off-takers for at least a few years (with gag clauses obviously). I think that as soon as the resource economics are better defined to a point where the JV feels they're as good they'll get (better cobalt and nickel extraction as per video) the whole project will be re-launched with a major partner.

Cheers,

Solarbat