RE:Zackra you ask What is the in cost to produce the cobalt My recollection was that base production costs were between $7 and $8 dollars a lb. However, I don't think that included repayment of capital start-up costs. Adding Capital start-up costs (aka financing) pushed break-even to more like $12 to $13 dollars, and really $25+ to have a desirable return worth the risk. This is why we could never get financing during the long stretches where cobalt was hanging around 25,000/tonne, and why Jervois made all their plans with a 25lb target, not $15 or so, where Cobalt was at the time.
Also, one thing we can’t overlook IMHO is mine life, which is 12 years (minimum). Due to winter delays, we may miss 2022, and with a 12 mine life, we need to be viable until 2035 to pay back t hose Capital Costs. However, EV’s make up 60% of the cobalt demand, and with prices going through the roof now, car makers are being forced to accelerate their dropping it. When that happens fully, 60% of Cobalt demand is gone.
So the bottom line is, there may be a short window to make money; however, is the market going to price that in? Cobalt is $31 /lb right now and rising. We’ve all seen those spikes, and those spike-drips. Where will Jervois be in Spring 2023, and how many Car manufactures will have already made the switch to LFP, 4690’s (or SolidSate)?
That is why Jervois may be stagnating in stock price. Time will tell if there will be a jump, and how much.