These are my current thoughts and may not be fully...

These are my current thoughts and may not be fully representative of the reality but it’s how I am seeing things right now. I have dropped the ball lately with this one, need to get back up to speed.

Six months ago management thought they were being smart by predicting cobalt prices to continue to rise. We are in no rush to sign any deals they said, lots of converters needing supply coming online locally, is that still the case or was that a terrible judgement call?

Both cobalt and lithium prices have dropped. Huayou SP has fallen off a cliff as has ours. Lithium prices aren’t necessarily indicative of actual long term contract pricing with supply still fairly tight, for now at least. Can anyone comment on whether this is the case for cobalt (varying prices from LME to MB) or has Glencore and a couple of others met this supply constraint near term? Pricing indicates that narrative.

We have met testwork expected early Q4.

“Outcomes from this work will provide key grinding and reagent consumption parameters to enable a full PFS/DFS to be completed for Stage 2 of the Kalongwe Project. In addition, Dense Media (DMS) product samples are being generated for potential customers. ”

As far as I’m aware the strategy is to progress with Stage 1 and fund stage 2 through stage 1. Will a full Stage 2 PFS/DFS need to be carried out before the whole project gets green lighted or will construction and stage two studies Be done simultaneously?

We seem to have done a lot of “positive” exploration work (spend) with very little concrete to show from it over the last 12 months. Will this ever translate into an increased resource - project NPV.

“The program at Kalongwe SW was designed to target high-grade cobalt mineralisation following encouraging recent trenching results in several Mine Series rocks identified during recent geological mapping. A total of 10 holes for 1,325m have been drilled at Kalongwe SW with 12 trenches for 1,250m also completed. During Q2, a total of 731m was drilled at Kalongwe SW. Refer to Table 1 for details. The results from recent diamond drilling and trenching at Kalongwe SW confirm a high-grade zone of cobalt mineralisation with encouraging near-surface resource potential. ”


NZC need to get a move on. With the likes of CLA and GAL looking quite attractive in more favourable jurisdictions there are more and more options coming into play as time progresses for offtake partnerships. How many more years on top of the already 2-3 years that they have been dilly dallying about (fence looks great, accomodation too and good news that they can all now check there fB too) will it take them to get a deal representative of the quality of the project, I’m hoping this year but can easily see it going into next year.