Julian Harvey


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Cheap(ish) Cobalt explorers are very hard to find - N27.ASX stood out against peers

Tracking Kidman (KDR.ASX) through the Marindi (MZN.ASX) court case and beyond, has been rewarding for us in the Li space. It also focused attention on the EV/Battery space and as a derivative of that demand, Cobalt (Co + ~250% in 12 months). It is hard to find Co pure plays as Co historically sat as base metal credit for producers, and tiny grades barely got tongues wagging on drill results. Now Co has broken through US$60k/t, drill results with 0.15% Co grades get market interest! We struggled to find "relative" value amongst the junior Co explorers, with a lot already running on results. Yesterday, we sent a trading desk note to clients discussing relative value amongst juniors, highlighting one name we own, Northern Cobalt (N27.ASX), which, in our view, stood out on a comparative basis, given market cap, location, existing resource (JORC 2012 COMPLIANT INFERRED MIN RESOURCE 500,000T @ 0.17% Co, Ni 0.09% AND 0.11% Cu) and current 20,000m drill program. If the reader has interest in the junior explorer sector (and understands the associated risks) then the desk note might be of interest (VIEW LINK)