Latest Reports Point to Expansion Needed for Cobalt To Make Supply Equal Demand
Palm Beach, FL – September 17, 2019 – The demand for cobalt continues to increase, which rises in part, as to its necessity in providing batteries a longer life. A report in an European journal said the demand is growing … : “As a result of the accelerated introduction of electric vehicles (EVs), the demand for lithium-ion batteries (LIB) is expected to increase significantly in the future. However, a potential limiting factor in the deployment of LIBs may be the supply of cobalt, largely used in a number of conventional battery chemistries. Plus another publication added that cobalt… :” is necessary for long battery life and stability/safety to avoid battery explosions and fires … even with less cobalt in each battery, world demand for cobalt will triple from 100,000 tonnes in 2017 to 300,000 tonnes in 2030.” And yet another report by Roskill found that: “Prices for cobalt hit their highest level in ten years in 2018, reaching over US$40/lb in April. A tight market, set against a bullish outlook for demand for cobalt in lithium-ion batteries, and concerns over long-term access to cobalt supply, helped prices reach dizzying heights. These longer-term narratives and countless other factors such as instability in the DRC, substantial physical stockpiling, and the public moves of major consumers looking to secure future cobalt supply, all helped to elevate prices in a trader-dominated market.” Active mining stocks in the markets this week include 21C Metals Inc. (OTCQB: DCNNF) (CSE: BULL), First Cobalt Corp. (OTCQX: FTSSF) (TSX-V: FCC), Sherritt International Corporation (OTCPK: SHERF) (TSX: S), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), Cobalt 27 Capital Corp. (OTCQX: CBLLF) (TSX-V: KBLT).
Roskill article continued: “Oversupply of intermediates, thereafter, contributed to a subsequent fall in prices in H2 2018 and Q1 2019… Though prices have fallen back, and market sentiment is depressed, Roskill forecast significant cobalt demand growth over the next decade, with the market expected to roughly double in size. Cobalt is used in a wide range of applications including batteries, nickel alloys, tool materials, catalysts and magnets. With demand across most major end-use applications set to increase, and with demand from the battery sector expected to enjoy double-digit growth over the coming decade, the market is gearing itself up for a sustained period of unprecedented consumption growth.
21C Metals Inc. (CSE: BULL) (OTCQB: DCNNF) BREAKING NEWS: 21C Metals is pleased to announce the following highlights from the first sampling program on the East Bull Palladium Project and field program on the Agnew Lake Project: The East Bull Property hosts an inferred resource of 11.1 million tons @ 1.46 g/t Palladium Equivalent (Pd Eq) for a total estimate of 523,000 ounces of PdEq (See July 3 press release and below).
East Bull Property:
The grab sampling and mapping of the East Bay Palladium mineralization has allowed 21C to determine locations to channel sample. The sampling focused on selecting sample locations that were not previously documented. The sampling and mapping were successful in defining areas of the mineralization that when channel sampled will provide economic mineralized intercepts that will increase confidence of the mineral resource. The channel samples will also allow definition of areas of higher grade Palladium that could to direct 21C to potential starter pit locations. The channel sample is a continuous sample cut using a diamond bladed rock saw.
- 73 grab samples selected to help identify the Palladium bearing rock types of the mineralized trend. Grab samples are used to determine the presence mineralization and may not be indicative of the overall grade of the zone.
- Sampling successfully defined locations for channel sampling and the higher grades could indicate potential zones within the mineralized zone for higher grade starter pits.
- Range of Palladium assay sample results (1000 ppb is equivalent to 1.0 grams per ton).
Mr Wayne Tisdale commented, “The grab sample program has helped confirm the palladium bearing rock types and highlighted key areas to be targeted by a trenching program. While any grab sample grades are to be treated with caution, we are very pleased with the initial sampling program and can look forward to the trenching results with confidence.” Read this entire release and more news for 21C Metals at: https://www.financialnewsmedia.com/news-bull/
Other recent developments in the mining industry include:
First Cobalt Corp. (TSX-V: FCC) (OTCQX: FTSSF) recently announced that it has awarded key contracts to complete a 55 tonnes per day (tpd) feasibility study on the proposed expansion to the First Cobalt Refinery (the “Refinery”). Field work is expected to commence in September and will culminate in the delivery of a definitive feasibility study (DFS) in Q1 2020.
First Cobalt recently announced that it had entered into a US$5 million loan facility with Glencore AG to complete advanced engineering, metallurgical testing, field work and permitting associated with a recommissioning and expansion of the Refinery in Canada. Upon completion of a positive DFS for a refinery expansion in Q1 2020 and subject to certain other terms and conditions, Glencore is prepared to advance an additional US$40 million to recommission and expand the Refinery.
Sherritt International Corporation (TSX:S.TO) (OTCPK: SHERF) a world leader in the mining and hydrometallurgical refining of nickel and cobalt from lateritic ores, recently reported its financial results for the three and six months ended June 30, 2019. All amounts are in Canadian currency unless otherwise noted.
“Against a backdrop of volatile commodity prices and unfavorable geopolitical developments, we continued our focus in the second quarter on preserving our liquidity and managing costs,” said David Pathe, President and CEO of Sherritt International. “During Q2, we worked closely with our Cuban partners to ensure sufficient collections to enable us to meet our Canadian cash requirements for the quarter despite increasing U.S. sanctions against Cuba. To that end, we received ratification of an overdue receivables agreement by our Cuban partners and an advance payment on Cuban oil receipts.”
Lithium Americas Corp. (TSX: LAC.TO) (NYSE: LAC) recently announced that it has closed the previously announced transaction (the “Project Investment”) in which a subsidiary of Ganfeng Lithium Co., Ltd. (“Ganfeng Lithium”) subscribed for newly issued shares of Minera Exar S.A. (“Minera Exar”), the holding company for the Caucharí-Olaroz lithium brine project in Jujuy, Argentina (“Caucharí-Olaroz” or the “Project”).
In consideration for the newly issued shares, Minera Exar has received US$160 million in cash to continue to fund the Project’s construction activities. Upon closing, Ganfeng Lithium has increased its interest in Caucharí-Olaroz from 37.5% to 50%, with Lithium Americas holding the remaining 50% interest.
Cobalt 27 Capital Corp. (TSX-V: KBLT) (OTCQX: CBLLF) recently announced quarterly production results from its 8.56% direct equity interest in the world class Ramu integrated nickel and cobalt operation (“Ramu”). In the quarter ending June 30, 2019Ramu produced 22,490 tonnes of mixed hydroxide product (“MHP”) containing 8,767 tonnes of Ni and 793 tonnes of Co. Year to date production at Ramu is 16,430 tonnes of contained nickel and 1,497 tonnes of contained cobalt. Ramu is one of the few High-Pressure Acid Leaching (“HPAL”) operations commissioned since 1999 that has met expectations with respect to capacity and cost…
“The Ramu operation continues to demonstrate that it is a top tier nickel asset. Cash costs continue to be in the bottom quartile with annual production consistently at or above design capacity. Production remains on track to produce 34,000 tonnes of Ni and 3,300 tonnes of Co in 2019. With nickel prices now trading around $8.00 per pound, Ramu is generating significant free cash flow which will enable the Company’s attributable 8.56% share to be used to repay its debt.” commented Anthony Milewski, Chairman and Chief Executive Officer of Cobalt 27.
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