{australien_flagge}Conico Ltd. (ASX: CNJ; FRA: BDD) and its joint venture partner Greenstone Resources (ASX: GSR) are looking to combine their respective 50 percent interests in the Mount Thirsty cobalt project in Australia. They are currently reviewing several options to simplify the current ownership structure, according to a jointly issued press release. This specifically includes the possibility of an initial public offering on the Australian Securities Exchange.
The goal, it said, is to ensure that Greenstone and Conico shareholders retain a long-term stake in the project. The 50 percent interest in Mount Thirsty is Conico’s third asset, along with its main Ryberg and Mestersvig assets in Greenland, each of which Conico owns 100 percent.
Consolidating Mount Thirsty’s ownership into one hand would enable the project’s further development, the partners believe. Since a prefeasibility study (PFS) was released in Q1 2020, the cobalt price has increased 33% from US$61,000/t to a current spot price of US$81,380/t, he said. Nickel prices have increased by 108% from US$17,850/t to a current spot price of US$37,115/t.
The Mt Thirsty project is considered one of the few undeveloped cobalt projects outside the DRC and Russia, together accounting for over 74% of the cobalt supply. The advanced Mt Thirsty project is located 16 kilometers north-northwest of Norseman, Western Australia. The project includes the Mt Thirsty cobalt-nickel deposit with a JORC resource of 26.9 million tonnes at 0.126% cobalt and 0.54% nickel. Feeding the Q1 2020 prefeasibility study (PFS) model with current spot prices for cobalt and nickel, the project is calculated to have a pre-tax net present value (NPV 8%) of $712 million.
Critical to the development of Mount Thirsty is securing a Native Title agreement. Negotiations with the Ngadju traditional owners are continuing, it says. An update is expected in April 2022.
Disclaimer: GOLDINVEST Consulting GmbH offers editors, agencies and companies the opportunity to publish comments, analyses and news on http://www.goldinvest.de. These contents serve exclusively the information of the readers and do not represent any kind of call to action, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. Furthermore, they are in no way a substitute for individual expert investment advice and do not constitute an offer to sell the stock(s) discussed or a solicitation to buy or sell securities. This is expressly not a financial analysis, but an advertising / journalistic text. Readers who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. There is no contractual relationship between the GOLDINVEST Consulting GmbH and its readers or the users of its offers, because our information refers only to the company, but not to the investment decision of the reader.
The acquisition of securities involves high risks, which can lead to a total loss of the invested capital. The information published by GOLDINVEST Consulting GmbH and its authors is based on careful research. Nevertheless, any liability for financial losses or the content guarantee for topicality, correctness, adequacy and completeness of the articles offered here is expressly excluded. Please also note our terms of use.
According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares of Portofino Resources and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time. Under certain circumstances this can influence the respective share price of the company. GOLDINVEST Consulting GmbH currently has a contractual relationship with the company, which is reported on the website of GOLDINVEST Consulting GmbH as well as in social media, on partner sites or in email messages, which also represents a conflict of interest. The above references to existing conflicts of interest apply to all types and forms of publication used by GOLDINVEST Consulting GmbH for publications on Portofino Resources. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. No guarantee can be given for the correctness of the prices mentioned in the publication.
