Tuesday, May 16, 2017 7:24:43 PM
ECSIF eCobalt Solutions... Cobalt metal...Price has found centerline = 20day average...and had some follow through today...I'm looking to take some profit here if price turns weak...
ECSIF eCobalt Solutions... Cobalt metal is in high demand due to growth in the electric vehicle ("EV") market, which uses lithium-ion batteries to power these vehicles (cobalt being a main component). In conjunction, its growing supply deficit is leading the price of the commodity higher. Macquarie Research projected a supply deficit of 885 tonnes in 2018, 3,205 in 2019, and 5,340 in 2020. That comes to a supply deficit increase of 6x in just two years. For large-cap tech companies and automakers looking to produce electric vehicles, the need for cobalt has become increasingly clear given its role in the lithium-ion battery mix. The metal constitutes a little over one-third of a modern lithium-ion battery's composition (and greater than the amount of lithium used itself).
How the competition is doing - Larger mining companies also have cobalt operations ongoing, including Freeport-McMoRan (NYSE:FCX), Katanga Mining (OTCPK:KATFF), Glencore (OTCPK:GLCNF), Fortune Minerals (OTCQX:FTMDF), Barra Resources (OTC:BRCSF), Tiger Resources (OTC:TRSDF), Lundin Mining (OTCPK:LUNMF), and Cruz Cobalt Corp. (OTCPK:BKTPF). https://seekingalpha.com/article/4066102-ecobalt-solutions-getting-u-s-equity-exposure-cobalt-metal-revolution
With respect to production facility engineering, P&IDs were 70% complete, electrical work was 70% complete, and mechanical equipment lists were 80% complete.
Based on the above-mentioned feasibility study, capital expenditure requirements for the project have come to USD$147 million with a post-tax NPV of USD$113 million based on a discount rate of 8.5%, calculated using a cobalt price of $19.50 per pound of cobalt sulfate. If the price of cobalt continues to increase as anticipated from accelerating commercial demand from the rechargeable battery market, this will increase the estimated NPV of the project. It is also expected that new-generation lithium ion batteries will maintain the highest long-term demand on account of life cycle, superior energy density, and overall safety profile.
ECSIF eCobalt Solutions... Cobalt metal is in high demand due to growth in the electric vehicle ("EV") market, which uses lithium-ion batteries to power these vehicles (cobalt being a main component). In conjunction, its growing supply deficit is leading the price of the commodity higher. Macquarie Research projected a supply deficit of 885 tonnes in 2018, 3,205 in 2019, and 5,340 in 2020. That comes to a supply deficit increase of 6x in just two years. For large-cap tech companies and automakers looking to produce electric vehicles, the need for cobalt has become increasingly clear given its role in the lithium-ion battery mix. The metal constitutes a little over one-third of a modern lithium-ion battery's composition (and greater than the amount of lithium used itself).
How the competition is doing - Larger mining companies also have cobalt operations ongoing, including Freeport-McMoRan (NYSE:FCX), Katanga Mining (OTCPK:KATFF), Glencore (OTCPK:GLCNF), Fortune Minerals (OTCQX:FTMDF), Barra Resources (OTC:BRCSF), Tiger Resources (OTC:TRSDF), Lundin Mining (OTCPK:LUNMF), and Cruz Cobalt Corp. (OTCPK:BKTPF). https://seekingalpha.com/article/4066102-ecobalt-solutions-getting-u-s-equity-exposure-cobalt-metal-revolution
With respect to production facility engineering, P&IDs were 70% complete, electrical work was 70% complete, and mechanical equipment lists were 80% complete.
Based on the above-mentioned feasibility study, capital expenditure requirements for the project have come to USD$147 million with a post-tax NPV of USD$113 million based on a discount rate of 8.5%, calculated using a cobalt price of $19.50 per pound of cobalt sulfate. If the price of cobalt continues to increase as anticipated from accelerating commercial demand from the rechargeable battery market, this will increase the estimated NPV of the project. It is also expected that new-generation lithium ion batteries will maintain the highest long-term demand on account of life cycle, superior energy density, and overall safety profile.
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