TSXV:FCO.H - Post by User
Post by
materialsgirlon Mar 15, 2018 4:53pm
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Miners negotiating with DRC have a very weak case
Miners negotiating with DRC have a very weak caseThe DRC has no weakness in negotiating.
They control 100% of variables. Exactly 100%
The companies negotiating are merely putting on a show
for shareholders.
Besides a 10% royalty on cobalt has no significance so long as
cobalt remains above $20 a pound. I expect cobalt to remain over
$20 for several years so all the DRC noise is all about nothing
The miners there cannot move the ore body as if it were a car
assembly plant. At $20 a pound, with a 10% royalty, the companies
still make money and they will still expand production.
Production expansion may slow down and be delayed a year or two
but miners want to mine and they will go back to doing what they want
to do.