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9.38%

14.5¢ first cobalt corp.

Ann: FCC Extends Iron Creek 100 Metres Downdip in Central Area, page-10

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rick26

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24/01/19

10:43

Post #: 37209142
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Originally posted by rick26: ↑

If I'm correct about that I guess it roughly means that if we have $2bn of contained cobalt equivalent it might cost $1bn to build the mine, extract it and process it into a concentrate ready for refining. This would indicate a $1bn profit is likely achievable at that point. After refining the cobalt into a finished product it should have doubled in value, so as we own the refinery we stand to make a further profit of $1bn minus refinery and transport costs once the product is sold to battery manufactures for example. So the $1bn has become 3 minus refinery costs at 0.1%. If I've got any of that wrong please correct me, I know I said earlier that the resource estimate update is 6 weeks away when it's more like 9, I do make mistakes and I'm only going off previous internet research and memory

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I did make a mistake with the calculation, the $1bn investment has become $4bn of finished cobalt product, representing a profit of $3bn minus refinery costs. That's not taking into account exploration and miscellaneous expenditure. Does that sound right?

FCC Price at posting: 16.5¢ Sentiment: Buy Disclosure: Held
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