Originally posted by ozblue
@cfp ........"The upcoming raise has been filled"
Might not be a filled as you think. For any of those that get sent a prospectus, they will have to complete the form to be accepted. People's perception of value is yet to be seen, plus the huge crash in Cobalt prices since last year has also changed peoples opinions.
The past 'commitments' to the cap raise are null and void with the requirement of the prospectus.
I expect the prospectus, if it gets to that stage, will go to those that indicated they were going to take up the cap raise last year. I know of some of those people who have changed their mind, mainly due to the time taken to get here, and the collapsing Cobalt price.
To describe the cobalt price as collapsed is misleading, it’s simply returned and stabilised at prices prior to the peak.
Companies like WFE and CLA we’re moving towards cobalt prior to the peak even existed. Only early explorers like CLA are up against it with a long expensive road ahead. I suspect companies like WFE are motivated with cobalt due to the EV revolution and battery demand for cobalt that continues to grow year on year at an amazing rate.
The smart move by WFE and cleverly strategic is to go straight to production, boom! Plan to make profits early, in a jurisdiction with low cost labour and history of high grades, and the ability to generate revenue should position themselves well to fund their own way and explore or expand via self-funding or attracting investment.
What an awesome position to be in, glad I’m onboard.....