The feasibility study for ICP outlines an 800 tpd production rate, producing (LOM) 31.8
million lbs Co, 39,241 oz Au and 42.8 million lbs over a 12.5-year mine life, averaging annually, 2.4 million lbs of Co, 3.3 million lbs of Cu and
3,000 oz Au. LOM production decreased for all metals, as a result of lower head grades. Importantly, since the PEA was completed cobalt prices have
risen significantly, from $19.50/lb to $26.65/lb. Using a 7.5% discount (8.5% used in PEA), after-tax NPV was estimated to be $135.8 million with an
IRR of 21.3%, showing an increase in after-tax NPV by 8% and a decreased in IRR by 12% from the PEA. The estimated costs of total LOM capital and reclamation
is $288.1 million, initial capital costs increased by 27% to $186.7 million, with average LOM net cash production increasing slightly to $5.05/lbs.
It appears that lower per tonne costs have offset lower head grades resulting in relatively unchanged per lb costs. (Figure 1)
Well-positioned to meet growing cobalt demand.
We continue to believe eCobalt is well-positioned in the improving cobalt market to
take advantage of rising prices, as the demand for electric vehicles and lithium-ion batteries grows. The project’s location in the U.S., places
it in a mining friendly jurisdiction with low political risks. We view eCobalt as one of the few companies positioned to meet the near-term increase
in cobalt demand, taking advantage of the current upswing in metal prices.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
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eCobalt Solutions Inc. - TSX:ECS - 1,2,3,4
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