Sherritt International Corp T.S

Cobalt prices are terrible

[YourFriendo]

No one has mentioned this...but it's worth a mention.

[mas7575]

Is cobalt Price really that bad? Down significantly from its recent spike highs, but historically not that bad IMHO. especialky considering that cobalt, as a secondary byproduct of nickel production, represents a credit to production costs more than a primary source of revenue. JMHO, mas75

[YourFriendo]

What it shows is that the bullish EV metal story that has been told at nauseam might have some fundamental flaws in it. Cobalt trading at 17$, there is a good chance nickel might follow the same trend over the next 6 months.

[mas7575]

Thanks for the follow up. No argument here with that logic, but I am curious where you see $17/lb for cobalt? When I look it up, I see a little over $23/lb which to me should be sufficient to keep CF healthy, and continue retiring those restrictive high-interest bonds. https://www.mining.com/markets/commodity/cobalt/ I am hopeful that LT outlook outweighs ST fears/risks, but certainly no

[Nickbull]

Not sure what you are talking about. Historical average is 12$. Currently it's in the mid 23's, there is no indication that metal prices are losing momentum. All commodities have slipped over the last 12 months over inflation fears and global recession. imo both of those will will continue to subside into the 3rd quarter next year. outside of some form of catastrophe the world will get

[YourFriendo]

Publication prices are behind a few weeks, no one is moving cobalt at those prices. If you want to move you need to be at 18-17$.  I agree the cobalt swap is good. My concern is the terrible capital allocation. My fear is they do something stupid and dump it back into oil and gas.