TSXV:FCO.H - Post by User
Comment by
tresspaseron Sep 29, 2017 11:06am
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Post# 26758601
RE:RE:Just like shearing the sheep
RE:RE:Just like shearing the sheepMy guess is that the CAPEX increased from 147M to 187M. Following that (probably) Canaccord dropped the target price from $1.60 to $1.40. The after tax IRR dropped from 24% to 21% (my guess because of it). So perhaps that is why we are seeing the adjustment.
Longer term, we are drilling sooner the other 93% of the property, which is good. Financing is expected to occur within 6 months hopefully, perhaps an off-take agreement. Finally, after KAT comes to the picture, we should recover the Cobalt price drop from that, and then Cobalt prices should take off again (once production of EVs starts more in earnest).
Just my 2 cents...