Fabled Silver Gold Corp T.FCO

RE:Sulphate vs Concentrate

[tresspaser]

It won't affect long term 'growth'.  It is the opporuntiy cost with respect to getting the sulphate premium (short, mid, longterm).   If the differential between sulphate and concentrate increase beyond a point, then sure... we loose out. However, creating a full-blown sulphate factory for only ECS cobalt would not have economies of scale that result in reduced costs and increased profits. Since the North American Cobalt market is small and nascent, I don't see miners scrambling to send us their cobalt either (Fortune Minerals will eventually be making their own sulphate I believe, or so the story goes now). So it is of no suprise that the market turned against this decision being optimal.

The near-term advantage of shaving 100M of CAPEX (and reducing risk),  especially for present stockholders, is substantial; for it would have been immedate dilution with the payback being longer term (aka  other stock holders).  So now, once we get an off-take, the dilution will be greatly reduced (especially at these prices).

It's really a perfect positive storm for ECS. With Cobalt at 75,000, and ECS being the first new miner out the gate...  it is a pretty good story.

GLTA