Impact: Slightly Negative
Electra provided a progress update on its 100%-owned Cobalt Refinery and released its Q2/22 financial results. Although refinery construction has progressed, the company expects commissioning delays and ~13-19% higher initial capital expenditures, another victim of continued supply chain disruptions and inflationary pressures. This has resulted in a delay of the commissioning of the project from Q4/22 into the spring of 2023. Overall, as these events have impacted the value of the cobalt refinery and our valuation for the company, we have decreased our target to C$11.75/sh. Moving forward, all eyes continue to be focused on the development of the Cobalt Refinery in Ontario.