Cobalt Pricing / SwapSo...cobalt prices are in the doldrums...posted prices do not accurately reflect the market. If you needed to unload a lot of Cobalt right now, you'd probably be fetching 15-16$. Lots of stockpiling going on.
This is a mixed bag for the cobalt swap arrangement. On one hand, nickel is high, so Moa JV should have no problem paying a good chunk of the Cobalt dividend.
On the other hand, Sherritt needs the cash from the Cobalt to pay for all of it's ridiculousness. So they will need to monetize the Cobalt at these low prices.
This is why I was not a fan of the debt repurchase. It's better to sit on a lot of cobalt and wait until the market turns then sell it at discounted prices to pay off cheap debt.