Carabella Res Ltd Nsw CBLLF

RE:RE:RE:TD research on KBLT Nov 29

[BarnFind]

If a person has dry powder available, I see this stock as a safe bet with a lot of upside.  The 09/30/18 financials showed at significant loss ($40M) with the drop of the physical cobalt price to about $34/pound the Cobalt 27 SP also fell by more than half.  If cobalt stays flat where it is at $25, there will be a somewhat greater loss when the 12/31/18 financials are available.  Howev, this all paper loss in that they still hold the physcal cobalt other than what was stolen - which recived a settlement at $40 - so profit on that.  Company's financials are now in US dollar (as of 06/28/18),  resulting in a "reduction" due to currency difference.  Take cash and physical cobalt, subtract liabilities and as of 09/30/18 you have about $270M, which is close to the $279M current market cap.  Because of the reduction in Cobalt price, the 12/31/18 finanncials will likely show a signifficant reduction in the physical cobalt value, so another $50M or so loss, but this all ignores more than half of Cobalt 27s assets - the royalities and streams.  If Cobalt 27 was only a vehicle to invest in physical cobalt I would not be investing in it, but it is not.

https://www.cobalt27.com/_resources/financials/Cobalt-27-Q3-2018-FS-MDA.pdf