Ann: Battery Conference Presentation - March 2019, page-156

The plant hasn't been operated for about 3 years (i.e. since 2016). The prevailing cobalt prices between January 2014 to December 2016 ranged from a low of US$21,700/t (29/1/16) and a high of US$33,000/t (1/7/15). For most of the 2014 & 2015 calendar years the price of Co was US$30,000/t + or - $US3,000. From 30/10/15 the Co price plunged from US$27,500/t to US$21,700/t, from there it bobbed around below US$25,000/t until July 2016 where the price started to recover to about US$32,000/t by December 2016.

So what we can take from all of that is that while the plant was in operation, the price of Co was not too dissimilar from the current price and at times was significantly lower than today's prices.

Coincident with the sharp fall in Co prices between October 2015 to January 2016 was a sharp fall in the Cu price from US$5,330/t to US$4,400/t which is likely the reason the plant was closed, given that the price for both metals sort of fell off a cliff. However, the Cu price has generally been more stable over the period from 2014 to now with an average around the US$6,000/t mark with fluctuations generally in the + or - US$1,000/t range.

I would like to think that in preparing their cashflow model the company would have examined the longer term trends in the metal prices and not been too bullish in their expectations, particularly with the Co price.