Originally posted by binwood
I think the NZC deal has broader implications for WFE than some holders might think.
Chengtun have just built an SX-EW plant and have been in offtake talks with NZC for 12 months. Instead of buying NZC ore their conclusion to the conversation was to take out NZC. Now why would this be the case? IMO it is because the value is in the feedstock and not the end product as some have been saying on here for ages.
If the 3rd party model worked, why drop $114m on a smallish resource if you're Chengtun?
Hi Binwood, WFE is only using 3rd party resources for between 12-24 months, after that we should have been able to drill our leases and decided on the best ones to mine if not all of them, by processing the 3rd party ore for the next 12-24 months will help WFE to be cash positive and give us funds to explore, drill, assay and prepare to mine, makes very good sense, it also tells us the cobalt bubble is still blooming and growing, or have the Chinese got it wrong and wasted 114 million, I think this is just the start of the cobalt ressurgence and its price, not long now