Conico posted an update to the market on the sensitivity of its Mt Thirsty Cobalt Nickel Project to increasing cobalt prices.
This was necessary as the October 2017 Scoping Study1 was published based on a long-term cobalt price of US$72,000/t. The published sensitivities at the time were limited to +/- 20%. Since the Scoping Study was published, however, spot cobalt prices have risen materially to US$93,750/t.
The Mt Thirsty Project is highly leveraged to cobalt prices with approximately 80% of revenue derived from cobalt; far higher than other nickel laterite projects. All other variables from the Scoping Study are fixed in this analysis.
The 2018 Pre-Feasibility Study will be conducted on behalf of the Mt Thirsty JV (50% Conico Ltd: 50% Barra Resources Limited). The study will test significant further upside value in all areas and de-risk the project.