RE:RE:RE:RE:RE:RE:RE:Cobalt Pricing / SwapWell according to some there is a pile of cash (working capital) in the JV.... I can't see a situation were the Ni sales don't fund the JV at a min. The other scenario where there is none left over for a divy to cover Sherritt operating costs not part of the JV (corporate, etc) is possible but unlikely. I see cash divy's from the JV continuing IN ADDITION to the flow of Co.
YourFriendo wrote: I would argue that it's not guranteed. If the JV needs to sell the Cobalt to satisfy internal cash requirements it will do so, thus decreasing (or eliminating the dividend). This would happen in a scenario where the proceeds from nickel sales are not adequate to cover cash demands of the JV.
It's also important to note that GNC's cash flow comes from Moa. So it's guaranteed in only such that the JV distributes cash / cobalt. GNC isn't some cash cow sitting in piles of cash waiting to pay back Sherritt.