KCR Stage One capacity is set at 3,000 tonnes per annum cobalt (as cobalt sulphate) and ~ 500 tpa nickel (as nickel metal). Construction is expected to commence in 1H25, with completion expected within 12 months.
This Update presents a compelling evaluation of a defensive cobalt and nickel refining business that is expected to generate stable margins throughout the highs and lows of the cobalt price cycle. On a 100% owned basis, the Refinery has the following financial metrics:
- Estimated capital cost of A$60m
- Stage One Post Tax NPV of A$68m returning IRR of 23%
We also outline the option for a Stage Two Expansion to double cobalt refining capacity, estimating that with additional capital expenditure of just A$23m, the Refinery could return:
- Stage Two (incremental) Post Tax NPV of A$90m and IRR of 64%
- Combined (Stage One + Stage Two) Refinery: Post Tax NPV of ~A$158m generating EBITDA ~A$46m pa
Joe Kaderavek, CEO of Cobalt Blue Holdings, said, “We are pleased to be able to update investors with pre-financing capital estimates. This latest study further demonstrates the Kwinana Refinery is a compelling, low-cost investment that rapidly injects Cobalt Blue into the mid-stream segment of the Strategically Aligned Nations’ critical minerals supply chain. The longer-term returns from expansion stages are particularly attractive”
Kan Ueda, Managing Director, Iwatani Australia Pty Ltd (Iwatani Corporation’s wholly owned subsidiary) commented “Iwatani Australia is pleased to note the considerable commercial, financial and technical progress made over the last six months to develop Australia’s first cobalt sulphate refinery. We look forward to a long-term relationship with COB, delivering and operating the Kwinana Cobalt Refinery”