Cobalt Blue Holdings Limited (ASX:COB), on September 18, 2018, wrote a letter to its shareholders in which information related to its Thackaringa Cobalt Project was highlighted. The top management stated that Wood Plc has been appointed and it would be conducting a gap analysis related to the prefeasibility study which would improve the Bankable Feasibility Study or BFS. This study would make the management aware of the areas which require critical attention and hence those specific areas can be concentrated upon. Generally, prefeasibility study is conducted in order to ascertain that in which scenario a particular business would be profitable by factoring in financial as well as technical analysis and finally after the study has been conducted, the best idea takes the charge.
As per the analysis, before going ahead with BFS Engineering, there are certain technical areas which require more attention. The analysis covered areas like mining, engineering, geology, hydrogeology among other areas.
On September 19, 2018, Cobalt Blue issued a press release which was with regards to the information mentioned above. The fresh release confirms that the technical advisers as well as the board are in the process of reviewing the report. The management would also be conducting a meeting with Thackaringa Joint Venture’s partner named Broken Hill Prospecting Limited (ASX:BPL). The primary agenda of the meeting would revolve around recommendations as well as the findings of the analysis done.
As per the report provided by Wood, work related to the BFS, development of the flowsheet and other work would take approximately 2 years. However, in the meantime, COB has been conducting internal studies to look out for other alternatives to cash flows which can be achieved by producing COB’s end products.
The management of Cobalt Blue continues to believe that it would finalise bank feasibility study as early as it can be done. Finally, it expects that the investment decision would be done by mid-2020. The industry in which COB is operating requires research work before BFS. As a result, Wood recommended the studies as well as work which needs to be taken care of. Moving forward, the management of COB would continue to provide the progress report in regard to BFS to its shareholders.
On September 21, 2018, at the time of writing, the Cobalt Blue Holdings traded at A$0.330 which reflects an intraday increase of 3.12%. However, the company has a market capitalization amounting to A$37.17 million.
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