independent valuation of luapula plant, page-164

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HAC30

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25/03/19

10:32

Post #: 37871187
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Originally posted by The Avenger ↑

Great reminder HAC that the JV partner quite happy with a big equity stake and yep bodes well for the drive to cobalt producer having a strong partner who wants skin in the game and also knows the DRC, plant operations and surrounding environment.

In terms of NPV again read below and problem I have is the rhetoric around thinking how MC is valued at plant NPV valuation models which are required for ASX relisting requirements...MC callers would be including the $70m plant, 636ktpa binding supply, the 5 landholding licenses, and the potential on relisting of an imminent first ASX cobalt producer and possible global top 10 cobalt producer...yes there are still many unknowns including the offtake agreement, relisting etc...but these will be all understood when the heart pounding prospectus is delivered....how long have you been in the game..are you seriously telling me professionals would be simply focusing on component of the business in the plant and going concern estimates at a fixed point in time..not sure you’re in the right game down this spec end...

5. NPV CLARIFICATION in IMO - Also note page 10 of METS report and clearly “the purpose of the plant valuation report is to recommend an estimated market value at a fixed point in time”….that’s what we get here…..”Real market value is constantly changing with market conditions and expectations AND CAN ONLY BE DERIVED AT THE MOMENT OF CONTRACTUAL AGREEMENT BETWEEN A BUYER AND A SELLER….so cast all your NPV concerns aside which use simple going concern models for estimating for the purposes of the ASX…all fun stuff IMO…just refer to page 44 for all the little model assumptions/and playful calculations…love that OPEX and CAPEX lack of clarity…hahaha

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Real market value = expectation of future cash flows which is what the NPV model values.

Take it up with the company if you dont like the numbers they provided. I've gotta respect them for bringing some reality to the debate though, its certainly been lacking with most of the rhetoric here.

Gotta give it to the ASX for once getting all this information out in the open before the liquidity event.

WFE Price at posting: 2.4¢ Sentiment: None Disclosure: Not Held
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independent valuation of luapula plant, page-164

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