@ozblue I think you are looking far too short term in your...

@ozblue I think you are looking far too short term in your calculations.

The last reported estimated supply was sitting at 100 kilotons of cobalt, by 2030 the growing EV market alone will require 300 kilotons of cobalt. What does this mean?!? It means that WFE is in a very commanding position moving forward as there is plenty of room for new supply to come on line. We are also all aware WFE is knocking on the production door and ready to capitalise on Offtake deals and/or strategic partners moving forward.

https://investingnews.com/daily/res...lt-investing/cobalt-supply-ev-battery-demand/

Supply and demand that’s simple stuff. Any new technological advancements in replacing Cobalt will take years to both research, develop and commercialise (How many nobody knows). As more money flows into the battery sector and in particular cobalt, the more difficult it will be to replace it as market leaders will take control. (Much like we are seeing in the oil industry, where large money are heavily invested and they are doing plenty to delay the transition to EV, market manipulation, fake news etc).

Winmar with a Copper, Cobalt mix will be powerful moving forward as copper is also forecasted to rise as demand increases. This in itself is a contingency as the plant will produce both products, if cobalt were to as you say continue down in price, what would prevent WFE in capitalising in the copper market and vise versa. Again this is a very commanding position.

Until we are more aware of numbers in regards to cost to produce etc we are all making educated guesses. Who says Winmar cannot make a large margin at current spot price or even if it dropped to $20,000/ton?!?

Remember if this is what transpires, remember that WFE are operating within the DRC, this means lower costs such as labour, transport, plant operations etc etc. This again gives the company some serious advantage over countries such as Australia as margins are lower as costs are higher. In a nut shell WFE with lower costs and higher grade resources will be able to have larger profit margins which enables profits to still be realised as other companies begin to struggle.

The above goes for any companies operating in such economic climates as is seen in the DRC. However as we are all aware this does come with some sovereign risk, but to be honest what investment doesn’t come with risk. You only have to look at COB, if your unaware they currently operate in AUS, down from almost $1.60 in less then 12 months to 14.5 cents today.

Now I’ll leave you with a few charts which talk volumes moving forward, we are only early days in this movement, demand is only increasing by the day.



I wish all holders well here, to be holding a potential Copper, Cobalt producer moving forward is quite a great position to find yourself in.

Facts and figures will stamp out all the misconceptions some posters have in here.

I will be looking for an entry, where who knows, that part is up to the market.

I have only discussed supply and demand and WFE’s commanding position moving forward, I haven’t even scratched the surface on this monster.

I must add, dual listing, what a power play that is, opens up investment in a part of the world which clearly understands Africa’s demographics. The US also understands the opportunity in Africa, especially with solid companies driving solid assets.


Please DYOR

AIMO