Ann: Opuwo Cobalt Project Maiden JORC Mineral Resource, page-233

To me it is common sense that prices will likely rise for a couple more years then begin to fall, perhaps being significantly enough below current prices in around 10 years time due to more supply options coming online quicker the higher it goes up, causing it to then fall (supply & demand).

For a shareholder, I think it is common sense to pick a company best positioning itself to take advantage of this over the next 10 years (even this is probably too far to look ahead, who knows what will happen).

CLA IMO will have capex of around $400m AUD for a 2mtpa plant (will need to wait till scoping study to have a much more verified number). ARL which you have mentioned in previous postings has $600m AUD capex, for just 1mtpa (PFS).

CLA can IMO be in full production of a 2mtpa operation at the start of 2021 and should be able to expand rapidly with free cashflow should it be beneficial to shareholders. ARL I doubt will be in full production come 2022 and IMO will be a real struggle to achieve this by 2023. I get a PFS can be improved upon, but those sorts of projects historically have shown many technical risks and issues getting them to be fully operational and on time.

After today, I reckon starting off at 3mtpa for the CLA scoping study is likely, very likely for less capex than ARL 1mtpa.


This is not a 50 year race, this is about taking advantage of the next 5-10 years.

It is clear to me that CLA is much better positioned to do this assuming that the scoping study goes anywhere near the plan. Sure mining costs will probably be higher, but processing will be so much cheaper and easier. That extra time in production due to producing earlier will really help NPV also, not to mention the ability to rapidly expand production much cheaper.

I'm not sure why you come over here specifically, but it is a bit early to be calling out what you are trying to when you or myself can't put a $ figure to the opex costs. This is Africa, underground mining is very suited to a resource such as this and it is much cheaper than Aus if it works out better to do so. There is 100km or so strike at/near surface though if it is such an issue. I get the feeling you are probably more frustrated ARL is down 45% since it's PFS and CLA has jumped more than 100% in the last 4 weeks. I think both of these are due to some of the reasons I have outlined above.


I'm picking the project that can rapidly expand for minimal capex and be producing quickly over the one that may be producing 2 years later at much greater capex and therefore dilution to shareholders. Also for these reasons I expect there to be plenty of interest around CLA, it won't have the issue of needing to do more drilling to make an NPV look better as of today, 1 less risk for the scoping study to be received well by the market.


If I was a large miner looking at acquiring a resource and developing it, I know which one I'd be picking, the one that makes me more money, easier and sooner, it's common sense.