RE: Cobalt5 May 2019 11:40
As to that cobalt article that is from July 2018 ie., it is nearly a year old.
http://www.infomine.com/investment/metal-prices/cobalt/
This gives up to date charts over different time periods.
However, AB has made assertions that there is between 100,000 and 400,000 tonnes of copper at Musonoi. There is cobalt too but that is supposedly around 20,000/25,000 tonnes.
At current prices, metal in place:
Copper
100,000 tonnes x $6,229= $622,900,000
400,000 tonnes x $6,229=$2,491,600,000
Cobalt
20,000 tonnes x $34,250 =$685,000,000
If the prices return to anything like what they were a year then happiness but those numbers look pretty good to me for a company valued at about £3.8mil where its market capitalisation is covered by its quoted investments.
Your focus on prices being lower only becomes relevant if you think prices are going higher and if you accept that there is substantial amount of copper and cobalt at Musonoi. If there is no copper and/or cobalt at Musonoi and Musonoi is therefore worthless, why are you bothered about the copper and cobalt prices?
I am afraid your argumentation is conflicted as usual:
1. Does Musonoi have copper and cobalt?
2. Does Musonoi have a value?
3. Will Andrew Bell make a mess of things such that no value can be realised from Musonoi?
AB has already confirmed himself that the company has had approaches about Musonoi (plural) ie., more than one approach. I speak to him regularly and have impressed on him the importance of getting it right at Musonoi. Whatever else happens, he has to get top dollar for Musonoi.
AB is 64, he doesn't want to be plodding around mining works in Kolwezi in ten years time. He has a decent stake in RRR (thought not as much as he would like) and this is one off chance for him to make some serious money for himself and the rest fo the shareholders.
If 85% of Kalongwe is worth $79mil then 100% of Musonoi has got to be $100mil/$120mil. Check out the Nzuri/Chengtun metrics: Musonoi is a better asset and much nearer to production.
RRR has to proceed with Musonoi as though it were a strong holder of the asset and intends to bring it into production. This is also the route that will prove up its true value. If everyone thinks that RRR will sell to the first half decent bidder then that is what we will get, bids which undervalue it.
With the above process there are inflection points which increase the value of the project. The first bit will be sampling all those old cores, then the JORC and then a bit of extra drilling, lastly a feasibility study. I would prefer that we went straight into pilot mining to get some cashflow going but it seems that this is not a goer.
DYOR
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