Northern Cobalt (N27) - Thoughts on the current drill campaign and Lithium project acquisition

Wentworth Securities

With the current drilling campaign ending with the onset of the NT wet season, N27 will be releasing results Jan 18. Given the price has been trading some 50% off its highs (still a great result from $0.20 lPO), I am looking again at N27, with a period of important newsflow ahead. N27, fully diluted, is still only ~$26m, and there is plenty to keep interest levels high: -

- Cobalt (Co) price has moved from US$60k to $72k per tonne - nowhere near 2008 high of $115k! - BMW saying we will need 10x's as much Co by 2025. They are joining the ever-growing chorus realising the reality of the Co shortage. Chinese launch an EV at half the Tesla entry price. - Stanton drilling should see JORC upgrade early in new year - Other targets - scout drilling at Stanton SW/NE - Running Creek - Felix - Felix East to be released in coming weeks - Metallurgy - what if the Co can be separated out through simple gravity/spiral - similar to DRC and mineral sands operations? And Capex was sub $10m - a potential game changer - and yes "hypothetical" at this stage. - Acquisition of Lithium Project (Arunta) east of Alice Springs - too cheap to pass up - with pegmatites - and gives exploration option through wet season

Full note (VIEW LINK)


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