Actually, they are guaranteed the $12 per pound, but this is not necessarily the price that the cobalt will be sold for. That is just the terms of the off-take agreement so the company could get the financing required to get the mine up and running. (According to the PR this estimated capital expenditure will be $125 million) The current spot price of $44 is a more accurate picture of how much it will be sold for, which should put the sales at around $2 billion.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.