RE:Don't believe to have 'really' read yesterday's release...Lucidivison,
Not sure how long you have invested, however, in Small Cap companies or any PR, in order to understand it truly, you need to void out the "noise" and "assumptions".
Noise as in adjustives, praises, adverbs (remember, there's a huge legal statement at the end that states the company is not liable for basically everything that was stated in the PR... read that part as well.
Assumptions such as - expected, nexxt several, could, expected ... these words can always be refuted by company stated that they didn't expect it couldn't get done when it clearly was the idea.
Now, the statement is correct that a higher tpa will yield a better return for the mine at lower cost
The statement is correct to assume that cobalt will be in much needed demand from 2020 and beyond (that's 2 years from now) .. always assume the worse.... hence demand from 2020 means late to end 2020 and beyond.
Uranium forecaster has been saying demand for uranium will shoot through the roof in 3 years ever since 2011.. they've been still saying that and uranium havn't recovered to 2011 level till this day. .. so .. forecasters are just as correct as economist and weather forecaster ... they just forecast without assumption models.. but it's much different than reality.
Samples to potential off-takers - that was done in September, 2018.. read that PR... so it's a nil statement in this PR because it's a repeat
testing of samples - samples was completed in Sept, 2018.. hence.. .if they are still doing it now.. this means it was delayed or they forgot to do it.. to me.. it's a red flag
not expected to significantly delay - expected - assumption .. basically the statement is getting investors ready that there will be delay.. but the delay could be significant.. not expected and expected is a 50/50 assumption - remember.. the CEO lied twice with definitive words such as FS 'will' be ready in October 2018.. FS is at "Final Stretch"
first class team, parising the team, - that's just noise.. look at all the Weed stocks or gold companies, they all say they have first class of everything. ... if all companies have first class team, first class asset... then what is 2nd class? hence first class means average, means basic.. no sane person will say their team and asset are average or below average.
So... when you read the report.. this is what you should understand
- Inreased tpa from 800 to 1200 tpa
- cost per ton will be lowered when the FS comes out, IRR and payback period wil be lower than previous report
- Demand for Cobalt expected to rise from 2020 and beyond (from forecasters)
- FS will be out in several months
- FS is NOT at final stretch as previously stated.. FS is at the obtaining quote stage (whatever that means0)
- ECS hired a team from other large mining company
- Offtake Financing talks is still in progress
- Full production will be delayed