Featured Company /
First Cobalt Corp.
The electric vehicle (EV) revolution has underpinned soaring cobalt prices in 2017, as demand continues to escalate amongst promises by car manufacturers to crank out more of the non-fossil-fueled vehicles. There are some interesting components to the dynamic of pricing for cobalt, a metal imperative to the rechargeable batteries in EVs that doesn't draw all the glamour of lithium that is part of the batteries’ Li-ion name. Less popular amongst the media doesn’t equate to less valuable to investors by any stretch of the imagination.
One issue is that the world largely relies upon supply from the Democratic Republic of Congo (DRC), one of the most unstable political climates worldwide where child labor is still employed in unscrupulous parts of the nation’s mining industry. The country, formerly known as Zaire, produced about 66,000 tons of cobalt last year, or roughly 63 percent of the world’s supply.
According to Bloomberg New Energy Finance estimates, that percentage could top 70 percent by 2025 against the backdrop of global demand escalating by 47-times today’s need. The spike in demand for cobalt, which is nearly always a byproduct of nickel or copper mining, is plainly led by the future of EVs, with forecasts ranging as high as Wood Mackenzie calling for EVs to make up 85 percent of all new vehicle sales by 2035.
When it comes to cobalt pricing, stubbornness appears to be the theme for producers. In September, Volkswagen Group went shopping to secure long-term contracts with cobalt suppliers as it looked to start making good on its promise to ramp up EV manufacturing. They came back empty handed, as the German automaker reportedly was offering fixed prices too low to find partners. Pricing leverage is a good thing going forward for producers.
Majors like Glencore plc will be ratcheting up cobalt production, but it is going to take more companies in more countries to meet the expected demand, a fact that bodes well for many juniors, including First Cobalt Corp. (TSX-Venture:FCC)(OTCQB:FTSSF), a Toronto-based company that has the objective “to create the largest pure-play cobalt exploration and development company in the world.”
First Cobalt is in the process of completing mergers with CobalTech Mining (TSX-Venture:CSK) and Cobalt One (ASX listed: CO1), combining three up and coming cobalt players to create a company controlling more than 10,000 hectares of prospective land and 50 historic mining operations in the neighboring historic towns of Silver Centre and Cobalt, Ontario, Canada. Furthermore, in the aptly-named Cobalt Camp contains a mill and permitted refinery facility.
The company was contemplating building its market presence in the DRC, but made the decision in September to abort that plan for now in favor of focusing its resources on a high number of advanced exploration targets already undergoing work in its home country.
First Cobalt is developing a major mining camp in Ontario, advancing its 4,300-hectare property and consolidating surrounding land through acquisition. The property includes the former producing Keeley-Frontier mine, a high-grade mine that produced over 3.3 million pounds of cobalt and 19.1 million ounces of silver, as well as the Bellellen mine, Drummond mine and many others. The Keeley-Frontier mine, which was at one time two operating mines, is comprised of five mining leases and substantial underground workings established during the decades leading to mining activities being halted in 1965.
One of the benefits of past-producing mines is the fact that there can be resources at the surface that were either left behind by arcane processing techniques or left untouched as thought to be uneconomical. At the company’s past-producing Bellellen Mine, a recent sampling program from historic muck piles uncovered diverse types of high grade cobalt mineralization, along with traces of silver, nickel and copper. Bellellen is a prime target today due to a high cobalt content compared to silver, a ratio that during a time where cobalt was less valuable caused the mine to struggle economically.
Nearby, recent grab samples from muck piles at the past-producing Drummond mine returned grades up to 0.65% cobalt, 1.79% copper and 4,990 g/t silver. The geology of this ground, which for the most part is still underexplored, suggests that it would be amenable to bulk mining.
Other mineralogical results from muck piles in the Cobalt Camp have shown high-grade vein mineralization containing up to 9.22% cobalt and over 5,300 g/t silver.
An independent NI 43-101 technical report on the Greater Cobalt Project endorses additional exploration based upon the potential for the property to host more arsenide silver-cobalt vein deposits in addition to the Woods Vein that was the primary source of historic production.
Although the merger is not yet completed, First Cobalt has already dug in with CobalTech on its properties too, with exploration designed to help define winter drill programs across multiple targets. These include the Caswell, Ophir and Silver Banner mines, which are known to be cobalt-rich, along with several mines in the Kerr Lake and Maiden Lake areas east of First Cobalt’s Keeley-Frontier, Haileybury and Bellellen mines.
As measured by share appreciation, investors are getting behind First Cobalt, the idea of a combined company and one of the most prospective land packages for cobalt production in North America in a mining-friendly jurisdiction with all the necessary infrastructure in place. Regardless if a person looks at the low end of demand estimates or the high, there is a stark need for a lot more of the metal now and in the future. It’s not all going to come from the DRC, so it makes sense to look to Canada and companies like First Cobalt to make a market impact on the supply/demand imbalance by adding to the 2,900 tons of cobalt produced in Canada last year.
Toronto-listed shares of FCC have climbed from a low of 56 cents at the start of October to a high of 75 cents mid-month. At 74 cents, shares are up 89.7% so far in 2017. Looks like investors are starting to realize the massive potential evident in this rapidly expanding company.
Corporate Snapshot:
First Cobalt Corp.
Stock Symbol:
CA
Stock Exchange:
TSX-Venture
Sector:
Basic Materials
52 Week High:
$0.9200
52 Week Low:
$0.2200
Alt Exchange/Ticker:
OTCQB:FTSSF
Current Stock Quote / Chart / News: Click here
Information as of
November 09, 2017
The electric vehicle (EV) revolution has underpinned soaring cobalt prices in 2017, as demand continues to escalate amongst promises by car manufacturers to crank out more of the non-fossil-fueled vehicles. There are some interesting components to the dynamic of pricing for cobalt, a metal imperative to the rechargeable batteries in EVs that doesn't draw all the glamour of lithium that is part of the batteries’ Li-ion name. Less popular amongst the media doesn’t equate to less valuable to investors by any stretch of the imagination.
One issue is that the world largely relies upon supply from the Democratic Republic of Congo (DRC), one of the most unstable political climates worldwide where child labor is still employed in unscrupulous parts of the nation’s mining industry. The country, formerly known as Zaire, produced about 66,000 tons of cobalt last year, or roughly 63 percent of the world’s supply.
According to Bloomberg New Energy Finance estimates, that percentage could top 70 percent by 2025 against the backdrop of global demand escalating by 47-times today’s need. The spike in demand for cobalt, which is nearly always a byproduct of nickel or copper mining, is plainly led by the future of EVs, with forecasts ranging as high as Wood Mackenzie calling for EVs to make up 85 percent of all new vehicle sales by 2035.
When it comes to cobalt pricing, stubbornness appears to be the theme for producers. In September, Volkswagen Group went shopping to secure long-term contracts with cobalt suppliers as it looked to start making good on its promise to ramp up EV manufacturing. They came back empty handed, as the German automaker reportedly was offering fixed prices too low to find partners. Pricing leverage is a good thing going forward for producers.
Majors like Glencore plc will be ratcheting up cobalt production, but it is going to take more companies in more countries to meet the expected demand, a fact that bodes well for many juniors, including First Cobalt Corp. (TSX-Venture:FCC)(OTCQB:FTSSF), a Toronto-based company that has the objective “to create the largest pure-play cobalt exploration and development company in the world.”
First Cobalt is in the process of completing mergers with CobalTech Mining (TSX-Venture:CSK) and Cobalt One (ASX listed: CO1), combining three up and coming cobalt players to create a company controlling more than 10,000 hectares of prospective land and 50 historic mining operations in the neighboring historic towns of Silver Centre and Cobalt, Ontario, Canada. Furthermore, in the aptly-named Cobalt Camp contains a mill and permitted refinery facility.
The company was contemplating building its market presence in the DRC, but made the decision in September to abort that plan for now in favor of focusing its resources on a high number of advanced exploration targets already undergoing work in its home country.
First Cobalt is developing a major mining camp in Ontario, advancing its 4,300-hectare property and consolidating surrounding land through acquisition. The property includes the former producing Keeley-Frontier mine, a high-grade mine that produced over 3.3 million pounds of cobalt and 19.1 million ounces of silver, as well as the Bellellen mine, Drummond mine and many others. The Keeley-Frontier mine, which was at one time two operating mines, is comprised of five mining leases and substantial underground workings established during the decades leading to mining activities being halted in 1965.
One of the benefits of past-producing mines is the fact that there can be resources at the surface that were either left behind by arcane processing techniques or left untouched as thought to be uneconomical. At the company’s past-producing Bellellen Mine, a recent sampling program from historic muck piles uncovered diverse types of high grade cobalt mineralization, along with traces of silver, nickel and copper. Bellellen is a prime target today due to a high cobalt content compared to silver, a ratio that during a time where cobalt was less valuable caused the mine to struggle economically.
Nearby, recent grab samples from muck piles at the past-producing Drummond mine returned grades up to 0.65% cobalt, 1.79% copper and 4,990 g/t silver. The geology of this ground, which for the most part is still underexplored, suggests that it would be amenable to bulk mining.
Other mineralogical results from muck piles in the Cobalt Camp have shown high-grade vein mineralization containing up to 9.22% cobalt and over 5,300 g/t silver.
An independent NI 43-101 technical report on the Greater Cobalt Project endorses additional exploration based upon the potential for the property to host more arsenide silver-cobalt vein deposits in addition to the Woods Vein that was the primary source of historic production.
Although the merger is not yet completed, First Cobalt has already dug in with CobalTech on its properties too, with exploration designed to help define winter drill programs across multiple targets. These include the Caswell, Ophir and Silver Banner mines, which are known to be cobalt-rich, along with several mines in the Kerr Lake and Maiden Lake areas east of First Cobalt’s Keeley-Frontier, Haileybury and Bellellen mines.
As measured by share appreciation, investors are getting behind First Cobalt, the idea of a combined company and one of the most prospective land packages for cobalt production in North America in a mining-friendly jurisdiction with all the necessary infrastructure in place. Regardless if a person looks at the low end of demand estimates or the high, there is a stark need for a lot more of the metal now and in the future. It’s not all going to come from the DRC, so it makes sense to look to Canada and companies like First Cobalt to make a market impact on the supply/demand imbalance by adding to the 2,900 tons of cobalt produced in Canada last year.
Toronto-listed shares of FCC have climbed from a low of 56 cents at the start of October to a high of 75 cents mid-month. At 74 cents, shares are up 89.7% so far in 2017. Looks like investors are starting to realize the massive potential evident in this rapidly expanding company.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. First Cobalt Corp. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause First Cobalt Corp.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
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