Fabled Silver Gold Corp T.FCO

RE:RE:RE:Financing / Current News

[magic_gerbil]

In relation to this entire thread, I believe it would be possible to create a price structure which would appeal to Tesla. Not to say you would have to generate a huge premium on todays cobalt price, but  a discount to create a deal feasible. Yes cobalt does need to be at $20/lb for a positive NPV, but if you have discounted financing costs written into the deal in exchange for a lower cobalt price this in turn becomes feasible.

This type of arrangement is admittedly a big stretch, but it is the type of financing Formation will need to seek over the long term to make things work. Seeing the reluctuance of securities firms to take risk on companies such as FCO, I just don't see the financing coming through - even with $20 lb cobalt prices. Where a partnership would be relatively inexpensive for a company like Tesla, and create a viable long term source of cobalt for years to come. Additionally Tesla would not be purchasing 100% of FCO's cobalt supply, and FCO would still have exposure to selling cobalt at variable market prices. It is not a question of if cobalt will hit $20/lb, but more a question of when, and how Formation can leverage its position within North America to make itself a viabile mining operation. As a forward looking investor willing to bet on FCO, I understand there will be no major payoff in the short term, but over a longer term time horizon with fiscally responsible management this company has the potention to go places.