opportunity?, page-439

Hi Guys,

Sprott like IGO and these are guys who know their mining stuff.

The short positioning, IMO, is misplaced now that Nova-Bollinger is ramping up without any problems and into some very favourable pricing dynamics. Operational cashflows look solid and the MD stated that 2019 is going to be a cash flow feast for the Company due to mining schedules. That doesn't take into account possible favourable prices that we are now seeing in the EV metals.

I think that the shorts are well out on the limb here and barring a general market calamity they are in for some pain.

Ni (and Co) will do very well for IGO in the years ahead.

Firstly, IGO produce the "right" type of Ni that can be used in batteries.

Secondly, battery manufacturers are increasing the amount of Ni relative to Co in each generation of battery that they develop.

The future is very bright IMO for Ni producers, and then IGO also have the Co to go with it (not to mention gold).

I have just talked to a CEO of a Co project who stated that the amount of interest he is fielding from potential Chinese offtake partners is "intense". Whilst prices haven't yet increased parabolicly, it would appear that the Chinese are gobbling up any source of Co they can get their hands on.

Dominance of the sector is a Chinese strategy (just as it was in solar) and if Western manufacturers haven't learnt their lesson then the Chinese will secure most of the available supplies and "win".

Cheers
John