My personal thesis ...Good Mornig everyone,
we are back in business. After the price correction to CAD 0.47 from mid April 2021, we are now back in the 80 zone. The business case is excellent (see Arlington Note).
My personal thesis: Pala Investment is building a position.
Insert: I know the Cobalt 27 story; but please don't look back; at the time, the dramatic collapse in cobalt prices was partly to blame for the dramatic drop in Cobalt 27's share price and the unfavorable takeover bid from Pala Investment.
I have looked at the whole business case again. Very central is the so called Tax-Holliday until and with 2026. I think for Pala - and also for us - it would be a super-invest, if Pala would enter for 60m$. The CAPEX debt could be paid back by the end of 2021. And then 5 years, 11.3% of the FCF would flow; at today's nickel prices that would be more than 36m$ p.a. Of course there would be a dilution and we would have plus/minus twice the number of shares. But our diluted share would be about 18mUSD p.a. with 86m shares this means just under 22m CAD, or 0.25 CAD p.a. FCF - for five year, Total: 110m CAD
And Pala Investment would have this capital:
https://www.globallegalchronicle.com/pala-investments-65-mil...
urai58