Cobalt Blue on the rebound

Cobalt Blue on the rebound

The market looked a little nervous on Tuesday afternoon with many stocks being pegged down, but it surged again on Wednesday as investors chased the big iron ore stocks, pushing BHP, Fortescue and RIO to new highs. Nevertheless, by the end of the week the market was looking a little subdued. There hasn’t been a change of the positive sentiment yet, so maybe the market is having a breather before going higher. Profit taking remains the biggest threat to the market, especially where traders are sitting on good profits after taking placements recently.

On Thursday, COB released a Project Update with a number of positive improvements in the numbers for the now 100%-owned Broken Hill Cobalt Project (previously called Thakarringa). In point form these were;
1. a 55% increase in the Probable Ore Reserve to 71.8 Mt at 710 ppm Co (51,000 tonnes of cobalt)
2. reduction in pre-production capex of A$70m
increase in planned capacity to 6.3 Mtpa
3. reduced environment footprint through obviation of the need for a tailings dam
4. increased production target by 67%, to 98 Mt at 690 ppm Co.
5. project life increase from 13 to 17 years with a capex payback of four years