Trent creating optionsHi All. I am an Australian, brought into FCC by its merger with Cobalt One. FCC is listed here as FCC.AX.
I am amazed at how easy mining is in NAmerica. I also own shares in significant Australian CuAu miner OZL, bringing on their second Cu mine, Carrapettena. To do it, OZL has to build or cause to be built:
1 a 270km 275kv and 132kv power line (serving two mines)
2. an airport
3 a residential village for its fly-in fly-out workforce
4. a ~100km road to railhead
Have a look at the location on google maps, and zoom out to see just how isolated it is.
All that secondary cap expenditure and the mine is still bottom quartile cost. By comparison, for FCC, HV power, highway and rail pass close by. Magic!
I headed this comment 'Trent creating options' as I see this as a key corporate activity.
FCC owns sufficient ground around Cobalt Camp to be regarded as the definitive aggregator. If the holders of adjoining parcels want to monetize, they can happily take FCC stock - if FCC likes their land.
The year's exploration for Cobalt at Cobalt Camp and Iron Creek is fully funded. Both are in proven Co rich provinces. Which will pass through resource proving, engineering and mine construction first is unknown. Yet we know their path to commericialisation is the shortest conceivable. Own-production from either existing resource is likey three years plus.
Meanwhile, FCC is on a share price roller coaster with plenty of thrills and spills. It may find another prospect to buy for shares - think Equator Resources, Cruz Cobalt or Agnico Eagle Mines properties - and dilute existing holders further. It will eventually need additional capital to develop the mines. Beware!
The refinery, once operating again, can process muckpiles, toll refine for third parties and be available to treat Cobalt Camp or US Cobalt ores as soon as they come out of the ground - having already re-developed and refined the refinery engineering skills base.
If FCC follows this course, holding it will be one of the most rewarding and exciting things in you ever do. Enjoy.
Do your own research!
Ash