TSXV:FCO.H - Post by User
Post by
TripFontaineon Jun 29, 2019 4:14am
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Post# 29875738
FCC management
FCC managementFor those who complain about FCC management, note that: They raised a lot of money while cobalt price was at its peak, they got their hands on the refinery, they consolidated a large chunk of the Canadian cobalt camp and used that value (that today is uncertain) to buy UScobalt and Iron Creek wich is an proven asset. And now they got the eyes of Glencore with a fair chance of getting a deal that could secure cashflow from the refinery in 18 months without dilution. With cash flow they could put Iron Creek into production with less dilution than other non cashflow peers.
And yes FCC management might have little experience operating mines but when that time comes they will have the money to simply just hire the right people! They might even hire Jervois management, everyone is for sale at the right price LOL.
Jervois/eCobalt are 3 projects in different parts of the world without synergies that needs to be developed with no potential cashflow in sight, and that probably means heavy dilution.
FCC has with Iron Creek potential synergies, a permitted refinery with arsenic treatment, and potential near term cashflow. If the deal with Glencore does not materialize there will be others, the frosty US-China relations highly motivates domestic (Ok its Canada) refinery capacity for an important automaker nation.
The FCC team has done so many things right, and most important they keep up and accelerates the speed through a cobalt market sentiment that atm is dead.