RE:RE:RE:RE:RE:Cobalt Pricing / SwapFriendo has a point on the cobalt dividend : Sherritt will need to sell the cobalt they receive, both their dividend portion as well as GNC share. And he is right again : this cobalt dividend will reduce the distributions that Sherritt will receive yearly.
However, overall the amount will be the same : Either Moa JV sells the cobalt and dividends only cash from their whole operation OR dividend out the cobalt to Sherritt and GNC + some cash.
The main difference : Sherritt now has a guaranteed dividend for the next 5 years. Which they never had in the past. Moa cannot cut the cobalt dividend, the agreement is for 5 years.
Binedell managed to monetize the Energaz/CUPET receivable over 5 years AND get a guaranteed dividend.
Now, what should Sherritt do with this cobalt ? Friendo thinks it should be stockpiled. I believe they should sell it as they receive it. Whatever rocks your boat but I do not want them to piss away the cash.
What remains : Binedell did a brilliant move. Game changer.
GLTA