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with fair financing how high does it go?
yes somebody knows something big and is buying with no substantial new:)
The weekly chart shows the top of the channel just about where we are now... momentum could break it as well while the fundamentals are firmly entrenched and should be the main driver to break through the resistance.
From Yahoo FWIW......
Talked to Mr. Huffman last week via e-mail. After reading the web site again and watching the highlights of annual meeting on You-tube, was left w/ good fuzzy feelings that at least its not a pump and dump scheme.
1. 15 years in the making
2. 30 years experience by these professionals in their respective field
3. The hospital
4. The ties to the gov't. and their need for geovic to mine.
5. The ongoing and increasing demand for cobalt.
6. I forget what the bus. term is, but its the letter of agreement by future customers to buy your Cobalt.
So I've seen a few pump and dumps, a few grossly exagerrated exploration finds, and some that couldn't find the financing.
We seem to have overcome these hurdles. just need to see where the financing lands us. This is encouraging. somebody seems to know something.
I can't find any news reports or any news on the webpage.
Cheers, Jeffro
I should have posted it when I saw it. The President of Cameroon recently told Geovic to stop delaying the project. Wish I could find that link again.
b4
14% for the week!!!!!!!!!!! Yesssssssssssssssssssssss!
The ask is $1 right now. Hope someone hits that!
An awesome week +27% and cobalt upticking as well!!!
Nice to see a 10% gain today. We have had a solid rise since 60. 79 right now.
b4
Okay big PR for the company finally..
is there new on when financing will be complete and mining started? What would the share price target be when operating at full capacity?
GVCM has always had a problem holding over 60 for the last couple of years. Today looks convincing! It is such a rare commodity and being so near the surface we should be at a couple dollars right now but we have a long way to go to get back to those '07 highs.
b4
I sure hope so! I own a bunch but at $1.64 so we have a long way to go.
b4
coming to life???
Sideways channeling...
I just checked: 59X62 from TDAmeritrade FWIW
Is Cobalt the Next Big Commodity Trade?
Shawn Hackett, president and CEO of Hackett Financial Advisors, a Florida-based firm with a focus on commodities and small-cap value stocks, says he has identified an undiscovered opportunity-- cobalt -- and a unique way to play it.
Hackett warns that it “contains a much greater degree of risk of loss than does [his] typical recommendation,” and is only for one’s “highest degree of risk capital.”
His pick?
Geovic Mining (GVCM), which is currently trading at $0.75 a share.
Three main battery technologies -- lithium-ion, nickel-metal hydride, and nickel-cadmium -- are currently used in cell phones by companies like Nokia (NOK), computers by companies like Apple (AAPL), and in electric and hybrid cars by companies like Toyota (TM).
No one knows which battery technology will be the ultimate winner. What is known, however, is that all three of them require cobalt.
As Hackett points out, this has increased demand for cobalt from 30,000 tonnes in 1997 to 60,000 tonnes in 2007 and he expects it to “continue to grow as far as the eye can see,” especially as we’ve barely scratched the surface with demand for electric cars, particularly in China.
“Everyone knows that 4 billion people in Asia are not going to be able to drive gasoline-driven cars due to pollution limitations and resource limitations,” Hackett says. “Small electric/hybrid cars are going to play a huge global role in allowing greater mobility to the emerging countries in a way that is more economical and more sustainable for the long-term growth these countries seek, given future crude oil resource availability limitations.”
An electric car battery currently needs three to seven pounds of cobalt, which is quite a bit of metal. Hackett also notes that, in February, “the London Metals Exchange launched the first cobalt futures contracts ever traded. This is a proxy for the growing importance of cobalt in the world and the increased global investment appetite in the future of cobalt demand.”
So, why Geovic Mining?
Currently, 40% of cobalt production comes from the Democratic Republic of Congo, one of the most dangerous and politically unstable countries in Africa, where the government “has been threatening to take over foreign cobalt mining operations.”
Hackett says “the world is anxious to find an abundant and reliable supply source for cobalt from a more stable region in Africa,” which is where Geovic comes in.
The company owns a 60% interest in the Nkamouna and Mada cobalt deposits, along with the government of Cameroon -- one of the most stable and foreign investment-friendly countries in Africa.
Most cobalt is extracted as a byproduct of copper and nickel mining operations. Geovic’s operation would be the world’s largest primary cobalt mine, guaranteeing greater quantities and more stable supply -- feasibility studies have shown there to be 1.5 billion pounds of cobalt in the ground, along with 4.3 billion pounds of nickel and 8.9 billion pounds of manganese, representing, at current prices, $12 billion worth of tradable commodities.
“What’s exciting to me about Geovic, is that the opportunity is right in front of you,” Hackett tells Minyanville. “A lot of times, the opportunity has passed you by, by the time you hear about it.”
Hackett reiterates that investors must “be cautious,” but adds that Geovic “owns an incredible asset,” unlike, say, an Internet startup.
“There’s just a tremendous amount of metal there, which lends a high degree of comfort you usually don’t get with so-called ‘junior miners,’ ” explains Hackett. “The risk is in the execution -- that they don’t raise enough capital, that there are infrastructure problems… but if Geovic can execute, it will be the largest primary cobalt producer in the world.”
This is a unique position in which to be, as companies like Rio Tinto (RTP), which mine cobalt secondarily from copper and nickel operations, respond to those markets, while a company like Geovic can respond directly to the demand for cobalt itself.
“I’ve always been a strong believer in owning industries that are once removed,” Hackett says. “People tend to focus on the ‘headline companies,’ like the high-profile battery and auto startups, not the secondary and tertiary outfits. That’s why the real opportunity will be to buy the cobalt companies while we’re still at the very beginning stages of the world’s appetite for cobalt.”
As for the economics involved, Hackett says Geovic’s operations look “outstanding.”
“I don’t have to bank on $20 or $15/pound cobalt prices,” Hackett explains. “Geovic is looking at somewhere between a $2-$5 net cost production. Cobalt’s been as high as $50/pound, and at the very, very, very worst of the economic meltdown, prices were hovering between $13-$15/pound. If cobalt prices stay in a range anywhere from $13-$50, this is going to be an insanely profitable mine.”
Hackett says there are two real triggers for 2010 -- a final feasibility study and securing full financing.
Hackett predicts that, with demand ready to skyrocket, there will be a “cobalt mania” at some point in the not-too-distant future.
However, in his opinion, those investors will be late to the game. “When people start going crazy on cobalt,” he says, “I’ll already be long gone.”
http://www.minyanville.com/businessmarkets/articles/cobalt-geovic-mining-hackett-battery-technology/4/20/2010/id/27889
GEOVIC ANNOUNCES ANNUAL STOCKHOLDER MEETING, FOLLOW-UP INVESTOR PRESENTATION
http://www.geovic.net/userfiles/file/press_releases/2010/10-04-20%20Portland-GJ%20Meetings%20-%20FINAL.pdf
April 20, 2010 – Denver, CO - Geovic Mining Corp. (“Geovic” or the “Company”, TSX:GMC, OTC.BB:GVCM), is pleased to announce details of its Annual Stockholders’ meeting, to be held in Portland, Oregon, as well as a follow-up investor presentation in Grand Junction, Colorado.
The Annual Stockholders’ Meeting will be held on Friday, June 11th at 10:00 a.m. at the Sheraton Airport Hotel, in Portland, Oregon. The address for the hotel is 8235 Northeast Airport Way, Portland, Oregon, 97220. Attendance by both stockholders and potential investors is welcomed.
Additionally, a follow-up investor presentation will be held on Wednesday, June 16th in Grand Junction, Colorado from 12:00 pm to 2:00 pm at the Doubletree Hotel, 743 Horizon Drive, for persons unable to attend the Annual Meeting. Members of Geovic’s senior management team will also be present at this meeting, and lunch will be served.
The record date for purposes of participation in the Annual Meeting is April 23, 2010. The Company intends to mail its “Notice of Internet Availability of Proxy Materials” to all record and beneficial stockholders on or about May 3, 2010. Using a control number that will be furnished to each stockholder on the Notice, each stockholder will be enabled to access the Company’s Notice of Annual Meeting, Proxy Statement, and online Proxy voting at www.envisionreports.com/GVCM [record holders] or www.edocumentview.com/GVCM [beneficial owners of shares held of record by an institution]. Proxy voting can then be completed using the internet, telephone, or by requesting written materials, following the instructions given at those websites.
To RSVP for the Grand Junction investor presentation, interested persons should contact Charlene Shell at 970-256-9681 or via email at office@geovic.net.
Yes, it does and as for the price of cobalt, since June there has been a progression of higher lows...
Cobalt heading up along with metals.
I am hoping for at least a pop to $1.
This does have the potential to explode.
Price of cobalt showing a string of higher lows... from the i-Box live chart... interesting because of the rise in the underlying commodity vs the price of the security... the security may surge ahead as the chart looks right for a buy point.
Super find... thank you.
Geovic part of Commodity Companies Index:
There are more than 1,000 companies of various market capitalizations trading on the Canadian and/or U.S. stock exchanges that are involved in some aspect of commodities be it in mining, drilling, agriculture, exploring, developing or financing. That being said there are only about 100 companies that have warrants that trade and only 35 have warrants that are of 24 months duration or longer.
These 35 companies have been gathered together into an index called the Commodity Companies Index (CCI) and their 46 associated long-term warrants into the Commodity Company Warrants Index (CCWI). As a sub-component of the CCI, the 20 companies primarily involved in gold and silver have been gathered together into the Gold and Silver Companies Index (GSCI) and the Precious Metals Warrants Index (PMWI).
The Commodity Companies Index
The CCI, which was up 126% in U.S. dollar terms in 2009, is an equal dollar-weighted index whose 35 commodity related companies with associated long-term warrants (i.e. 24+ months duration) trade on the U. S. and/or Canadian stock exchanges.
These companies have diversified market caps as follows:
- 5 are large-cap (i.e. 14%);
- 8 are mid- to small-cap (i.e. 23%);
- 22 (i.e. 63%) are micro- or nano-cap (i.e. 63%).
Another way to look at the CCI is a breakdown as to the commodity they are related to which is as follows:
Oil and Gas Constituent Companies
21. Bankers Petroleum; T.BNK/ - ; .wt.A/BAPKF - March 2012 - 066286147
22. Pacific Rubiales; T.PRE/ - ; .wt/ - - July 2012 - N/A
Merchant Banking Constituent Companies
23. Aberdeen International; T.AAB/ - ; .wt/ADNLF - June 2012 - 003069119
24. Endeavour Financial; T.EDV/ - ; .wt.A/ENDEF - February 2014 - G3040R133
25. PineTree Capital; T.PNP/ - ; .wt/PNLDF - - April 2012 - 723330130; .wt.A/ - - October 2012 - 723330130; .wt.B/ - - July 2013 - 723330148
Base Metals Constituent Companies
26. Baffinland Iron Mines; T.BIM/ - ; .wt/BFIRF - January 2012 - 056620115; .wt.A/ - - December 2012 - 056620131; Iron Ore
27. Breakwater Resources; T.BWR/ - ; .wt.A/ - - April 2014 - 106902166; Zinc
28. Coalcorp Mining; T.CCJ/ - ; .wt.B/CJCPF - June 2013 - 190135160; Coal
29. FNX Mining; T.FNX/ - ; .wt/ - - September 2012 - 30253R119; Nickel
30. Geovic Mining; T.GMC/ - ; .wt.A/GVICW - March 2012 - 373686120; .wt.B/ - - April 2012 - U37397111; Cobalt
31. Mega Uranium; T. MGA/ - ; .wt/MEGUF - February 2012 - 58516W112; .wt.A/MEGRF - June 2012 - 58516W120; .wt.B/ - - October 2014 - 58516W146; Uranium
32. Mercator Minerals; T.ML/ - ; .wt/MRCMF - February 2012 - 587582115; .wt.A/ - - January 2013 - 587582123; Molybdenum
33. Uranerz; T.URZ/ - ; .wt/ - - April 2012 - 91688T112; Uranium
34. Western Canadian Coal; T.WTN/ - ; .wt/ - - June 2012 - 957860125; Coal
35. Zasu Metals; T.ZAZ/ - ; .wt/ - - December 2012 - 989197116; Zinc, Lead
Thank you very much, ezphil... so by the numbers, we could expect to see that there is an average between the 2 commodities of $20/lb.
6300 tons of metal X 2000 lbs./ton = 12,600,000 lbs. of metal...
12,600,000 lbs. of metal X $20/lb = $252,000,000.00 revenues...
Revenues X 21 years mine life = $5,292,000,000.00...
Inflation usually means higher prices so this projection is very conservative in my opinion.
Looks to be worth any shares I can buy under $1 and we have not begun to consider the manganese and other metal they find on the way to becoming the #1 producer of cobalt in the world!!!
French to English Translation.
The Canadian company Geovic will invest 379 million dollars in the proposed nickel-cobalt-manganese Nkamouna in southeastern Cameroon.
It plans to produce 4200 tons of cobalt per year and 2,100 tonnes of nickel per year for 21 years.
The company expects to complete the feasibility study later in the year 2010, with production prospects in 2012.
Cameroun : La société canadienne Geovic investira 379 millions $
Cameroun
15-01-2010
La société canadienne Geovic investira 379 millions de dollars dans le projet de nickel-cobalt-manganèse de Nkamouna, dans le sud-est du Cameroun.
Elle prévoit de produire 4200 tonnes de cobalt par an et 2100 tonnes de nickel par an pendant 21 ans.
La société envisage de terminer l'étude de faisabilité dans le courant de l'année 2010, avec des perspectives de production en 2012.
I need a translater:
Cameroun : La société canadienne Geovic investira 379 millions $
Cameroun
15-01-2010
La société canadienne Geovic investira 379 millions de dollars dans le projet de nickel-cobalt-manganèse de Nkamouna, dans le sud-est du Cameroun.
Link:
http://www.lesafriques.com/cameroun/cameroun-la-societe-canadienne-geovic-investira-379-mill.html?Itemid=229?article=214970
Please Note: All news in this release is summarized. To read the full report, go to www.caesarsreport.com, and sign up Free to receive the full report.
Track Performance: A “Mining Top 25” portfolio will be added on the Caesars Report website, so visitors are able to track the performance, starting January 1st 2010. This portfolio can be viewed here; www.caesarsreport.com/portfolio?
FerrAus Limited (ASX: FRS) begins the second part on a deserved 20th place. Their overall Iron Ore project has plenty of potential and railroad access could be a major brake-trough for the company. (for the main catalysts for 2010 and more: see the full report at www.caesarsreport.com)
Universal Resources Limited (ASX: URL) was ranked 19th. The merger with Vulcan Minerals (TSX-V: VUL) provides a cash-injection of 28M AUD, Xstrata is shareholder of the company (4.5%), and after the merger there are two projects with Feasibility Study. (for the main catalysts for 2010 and more: see the full report at www.caesarsreport.com)
U.S. Silver, Corporation (TSX-V: USA) has the 18th place. Silver Valley provides a great location to mine, Once the Galena Shaft is repaired, a production increase of 50% is forecasted from 2011 on. The new management is clearly production-focused. They have a relative high cash costs for silver (10.5 USD/oz anticipated in 2011), but it’s a nice leverage to silver prices. (for the main catalysts for 2010 and more: see the full report at www.caesarsreport.com)
Geovic Mining Corp. (TSX-V: GMC) fits in well on the 17th place. High-grade Cobalt, low cash cost, and a gi-gan-tic deposit, and incredible amount of cash make them a company you want to follow. (for the main catalysts for 2010 and more: see the full report at www.caesarsreport.com)
Cameroon: Mineral Exploitation - Korea to Partner With country
Godlove Bainkong
12 January 2010
The Country's Ambassador to Cameroon, Hosung Lee, yesterday had a working session with MINIMIDT.
The Korean government has announced its readiness to partner more than ever before with the government of Cameroon in exploiting the numerous mineral resources the country is blessed with. The Ambassador of Korea to Cameroon, Hosung Lee made the revelation yesterday after an audience granted him by Cameroon's Minister of Industries, Mines and Technological Development, Badel Ndanga Ndinga.
Speaking to the press after the over one hour discussion with the Minister and some of his close collaborators, Mr Hosung Lee said Cameroon has enormous mineral potentials and that efforts are ongoing to attract as many Korean investors into the sector as possible. He said his country currently runs two mining companies in Cameroon whose application for mineral exploitation is under study by government officials. "We are also interested in partnership with other foreign companies operating in the country like Geovic which has already obtained its exploitation rights", the diplomat said.
The promise came on the heels of giant mining projects announced for this year by the Head of State during his end-of-year address the nation. The President cited among others, the construction of the Nkamouna cobalt, nickel and manganese mine, diamond mining at Mobilong as well as speed up the process that should lead to the mining of bauxite at Minim-Martap- Ngaoundal and iron at Mballam.
Mr Hosung Lee said they also discussed ways of reactivating the cement factory programme in Limbe as well as ways through which the number of government officials trained in Korea could be increased.
I am starting to think that Geovic may have the goods. I have been killed in the past on startup mining companies. I dould not resist taking a bite into this one.
GLTA
Not appearing here (SEC) but at pinksheets, yes to all 17 form 4's which are acquisitions - ALL of them!!!
I learned long ago that many of these companies increase the PPS within 180 days of these filings... I have no doubts!!!
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001398005&owner=exclude&count=40
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=gvcm
Anyone happen to notice the ~17 form 4's listed today?
News showed up on my Streetsmart Pro 01/13 18:45 - 19:40
Are they warming up the engines?
waiting to see what group is doing this...
Yah, what an outrageous looking candle today as this just explodes upward making the weekly chart look great as well!!! NICE!!!
very quiet for a stock that just moved over 20 percent today..
Cobalt is one of the world's essential elements. Of all elements, 27 are essential to man. Cobalt is one. It has many strategic and irreplaceable industrial uses but it is as the central component of Vitamin B12 that it is VITAL.
looking to get back into this company. Bought in a couple of years ago and took a beating. I think this company is still 6 months to a year away from making any significant move. Currently in FFGO as a gold play, some interesting things happening currently, we'll see what happens. That stock was DOA for about 9 months, even lost its bid, but now back with a lot of buzz circulating around it.
AfDB projects $1.34 bln five-year grant for Cameroon
Oct 5th, 2009 by AfricaTimes.
The African Development Bank expects to grant Cameroon $1.34 billion in grants over the next five years to help it improve its mining, forestry and agriculture sectors.
Poor roads, railways and ports along with unreliable electricity and communications have prevented the West African country from diversifying away from energy, which makes up about half of export revenues, Racine Kane, the AfDB’s new Cameroon country chief, told Reuters in an interview this week.
“Cameroon has a rich potential in its strategic location, agriculture, forestry, mining and ecosystem but these cannot be tapped for sustained economic growth because of bad governance and insufficient basic infrastructure,” Kane said.
Kane said he expects the bank to grant Cameroon some 857 million in Unit of Account credits, roughly the equivalent of $1.34 billion, between 2010 and 2014, as part of a programme to improve infrastructure.
Cameroon’s mining sector is estimated by the Ministry of Industry, Mines and Technological Development to be worth about $100 billion, but production and processing of minerals like bauxite, cobalt, diamonds, and gold has lagged.
“Exploitation of all these potentials and opportunities are held back by poor road networks connecting production zones to market centres but also the inefficient supply of electricity in quantity and quality for industrial processing,” he said.
“In short, the basic infrastructure sector is a sector with strong growth potential demanding huge investments.”
LUSAKA – Zambia's largest cobalt producer, Chambishi Metals will restart production this week after suppliers in the Democratic Republic of Congo (DRC) delivered enough cobalt concentrates, the firm said on Tuesday.
Operations at Chambishi were suspended in December and placed on maintenance due to losses the company suffered owing to the global economic slowdown.
Output was due to restart in October, but Chief Executive Derek Webbstock said on Tuesday production would only start this week following the arrival of the raw materials.
"We have received enough cobalt concentrates from Congo and we will start processing cobalt this week," Webbstock told Reuters in an interview.
Webbstock could not state the exact quantity of the cobalt concentrates delivered and at what capacity the plant would resume output but insisted the raw materials received were sufficient to start and sustain production.
Chambishi had forecast output at 3 400 t of cobalt in 2009 from 2 500 t in 2008 before it suspended operations.
"We initially expect about 300 workers to resume working and more will probably be engaged as production increases," he said.
Webbstock said the company would start processing copper concentrates after China Nonferrous Metals Mining Corporation (CNMC) unit, Luanshya Copper Mines (LCM) restarted output.
"The copper we processed before came from Luanshya and we can only talk about restarting the processing of copper after Luanshya starts production," Webbstock said.
Chambishi, which was previously owned by LCM, then a joint venture of Bein Stein Group Resources (BSGR) and International Mineral Resources (IMR), is now owned by Enya Holdings of the United Kingdom.
I believe we are in for a pop.
Recent news:
Cobalt prices push to three-month highs, end-user interest starts to bubble up
By Martin Hayes - Chief Correspondent, martin@minormetals.com (+44 (0)20 7929 6339)
Email this page to a friend - Printer friendly version
London, 30 October 2009 - Cobalt prices moved higher in Europe this week, maintaining a recent trend to hit their highs levels for some three months as end-user interest continued to emerge and sentiment improved.
"The market is quite a bit stronger than a few weeks ago. There was a lot of bullish talk at a conference last week in the US," a trader said.
Prices edged up to just below the levels of early August, when the high-grade price briefly popped above $20.00 per pound in a premature rally ahead of expected fourth-quarter buying.
High-grade 99.8 percent metal was quoted at $19.00/20.00 per pound, up around $1.00 from last week, while 99.3 percent Russian metal stood at $18.00/19.00, up around $2, and just 25 cents below the nine-month peak set in the summer.
"There is a shortage of prompt availability right now and the market is looking good for 2010. Super-alloy demand appears good," the trader said.
Cobalt demand is fairly broad-based but around 55 percent emanates from the chemicals sector, which has started to show signs of life, while some 18 percent is used in super-alloys.
Up to 2007, demand had risen for six years in a row, reaching annual record levels of just under 60,000 tonnes, but it tailed off in 2008 as the economic downturn bit.
"In the first quarter we are going to go to $35 because there is a lot of pick-up in demand and very little supply," another trader said. "You've got three producers out of action: Vale Inco, Uganda and Chambishi in Zambia."
The LME will introduce its cobalt futures contract in February and there are some signs of pre-launch positioning taking place. One producer - Vale - has already listed its cobalt for delivery and more are expected by the end of the year.
"There will be a scramble for low grade (99.3 percent) as this is the minimum specification to put into warehouse and deliver," the second trader said.
The discount between the grades is already narrowing - business for 99.3 percent cobalt has been seen in the $18.00 per pound level and even higher in an isolated trade.
"I think it is a bit premature to talk about stockpiling now - we may see that before the end of the year," the first trader said.
Signs that price volatility is emerging have resulted in consumers opting more towards fixed-price contracts rather than formula-based transactions, the second trader said.
Even before debuting as a fully-fledged futures market, cobalt has built up a reputation as a fast-moving metal that can rival its major base metals peers, such as copper, for peak-to-trough volatility.
Prices have displayed this over the past year amid high volatility. They reached five-year lows of $9 per pound for 99.3 material and $10 for 99.8 metal at the start of December last year, tumbling after hitting 30-year peaks and near-record highs of more than $50 per pound in May.
The cobalt price seems to have registered the 3rd consecutive higher low...
Nice rounding bottom on the chart... look at the 3 year daily and weekly...
Geovic Mining Corp - Cobalt Mining Company in Cameroon
Tuesday, 23 June 2009 13:17
Geovic Mining Ltd. (Geovic) aims to be the world’s largest cobalt mining company through its 60% ownership of Geovic Cameroon PLC (GeoCam). GeoCam’s Mine Permit covers 1,250 square kilometers in Cameroon, Africa, and provides exclusive production rights to seven large cobalt-nickel-manganese deposits. The first of the seven deposits, Nkamouna (pronounced ka-moon-ah), is currently under development.Nkamouna’s proven and probable ore reserves are 54.7 million tonnes ... ...at average grades of 0.25% cobalt, 0.69% nickel, and 1.33% manganese. This reserve yields 11.7 million tonnes of concentrates grading 0.74% cobalt, 0.99% nickel, and 3.78% manganese suitable as a feedstock for the Company’s unique processing facility. An additional 145 million tonnes of inferred resources at the Mada deposit, the second of the seven properties planned for development, is adjacent to the Nkamouna processing plant.
A September 2008 Optimization Study to a 43-101 Technical Report dated January 17, 2008 estimated that the Nkamouna Project will deliver after-tax cash flow (discounted at 8%) of US $1,024 million (or $614 million net to Geovic's 60% interest), an IRR of 44%, and a payback of 1.9 years based on 100% equity financing and 3 year average metal prices (ended June 2008) of $26.57/lb cobalt and $12.39/lb nickel, respectively. Average operating costs during the first 19 years of production are estimated at $2.04 per pound of saleable cobalt, net of nickel, manganese, and scandium byproduct credits. The strength of the estimated project economics are attributed to the unique physical properties of these specific laterite deposits, and should be enhanced further by the addition of circuits to process byproduct manganese and scandium.
Due to weak commodity, capital, and credit markets, construction of the Nkamouna plant has been temporarily delayed by GeoCam. Currently, Geovic is performing bench and pilot-scale tests aimed at increasing cobalt yields, reducing capital and operating costs, and lowering overall process risks. Such tests are anticipated to be completed by the end of the third quarter of 2009, as is the publication of an updated NI-43-101 compliant resource/reserve report for the Nkamouna and neighboring Mada properties.
Cobalt has many diverse applications, including rechargeable batteries for cell phones, computers, and hybrid electric vehicles, super-alloys for jet engines, chemicals, wear resistant alloys, catalysts, and magnets. Global cobalt demand in 2007 was 59,900 tonnes compared to 31,000 tonnes in 1997, and in early 2008 cobalt prices briefly exceeded their all-time high of more than $50/lb.
Geovic is committed to sustainable development and social responsibility. Our long-term success is directly related to the welfare of the people and communities where we operate. Consequently, the Company has developed its GeoAid program to ensure that sustainable and high quality environmental and socio-humanitarian standards are an integral and essential component of our mining projects.
The Company is based in Denver, Colorado, and its common shares (GMC) and three series of warrants (GMC.WT, GMC.WTA and GMC.WTB) are traded on the Toronto Stock Exchange. Additionally, as of August 2008 the shares also trade in the U.S. on the Over The Counter Bulletin Board (OTC.BB) under the ticker GVCM. To our knowledge, Geovic is one of the few pure cobalt plays in the investment universe.
Cameroon: Revamping the Economy - Mining, Industrial Emergency Plan Afoot
Lukong Pius Nyuylime
8 July 2009
--------------------------------------------------------------------------------
Authorities of the Ministry of Industries, Mines and Technological Development launch reflection on new takeoff.
All hands are already on deck at the Ministry of Industries, Mines and Technological Development following the firm instructions of the Head of State to review action programmes and produce palpable results within the next six months.
The various departments, particularly those directly concerned with the instructions (Industries, Mines and Standardisation) are busy reflecting on the new measures to take in order to hasten the execution of the road map announced at the beginning of the year. The mining sector, it should be underscored is one of the areas that have during the past few years attracted the attention of multinationals. New discoveries are being made, negotiations and feasibility studies launched but the results remain surprisingly timid. The reasons for this laxity stretch from laziness on the part of actors in the sector, notably the administration to intricacies in the implementation of the law regulating the sector.
These are obstacles that have not left the Head of State indifferent. "Quite recently, I said that we should not surrender in the face of difficulties and that we should rather strive further to overcome the crisis. Besides, the early signs that the global economy is picking up are beginning to show. We should be ready to seize the ensuing opportunities", President Paul Biya said during the last Council of Ministers Meeting. This statement forms the underlining principle with which authorities of the Ministry of Industries, Mines and Technological Development are working.
Six months, one could imagine, may sound so short a time to produce the results prescribed by the Head of State, especially for major projects in the mining and industrial sectors. However, one needs to understand that these projects have been on course for years and that deadlines for some have come and passed. They are not new projects. So, what the Head of State certainly meant was that they should be drawn to their logical conclusion having rested in the drawers beyond expected time.
"Our major industrial and mining projects have stagnated. Credits have definitely become scarce. However, would we be in this situation if we had been more responsive prior to the crisis? These issues must be revisited with a greater determination to succeed", he decried. In very clear terms, the Ministry of Industries, Mines and Technological Development must sit up, reactivate projects that seem to have gone into limbo and search for ways of getting them financed. So far, only one major mineral exploitation licence have been issued to the Cameroon branch of the American company, GEOVIC for the mining of cobalt-Nickel in the Nkamouna locality in the eastern region of the country, Cameroon branch of the American company, GEOVIC for the mining of cobalt-Nickel in the Nkamouna locality in the eastern region of the country. With the instructions from the Head of State, it is hoped that many more licences will be issued out to ensure that the wealth Cameroon has underneath do not remain fallow while we keep beating our chest we have potentials. Like one diplomat stated recently, potentials do not develop a country.
The Cobalt Story
Richard (Rick) Mills
www.aheadoftheherd.com
As a general rule, the most successful man in life is
the man who has the best information
What is Happening with Cobalt?
Cobalt became one of the two “major” minor metals in this decade’s metals cycle, the other being molybdenum. Cobalt also made the short list of four metals that the European Union chose to name in its press release as representative of the 40 metals it is classifying as critical:
Lithium, Tantalum, Cobalt & Antimony
Cobalt’s largest market is in the rechargeable batteries that are used in billions of electronic devices from cell phones to laptops to hybrid automobiles. Cobalt is also used in super alloys, catalysts, metallurgical (hard metals), pigments, soaps, adhesives, and magnets. As Asia and Africa become more prosperous, the demand curve for cobalt is expected to be steady or increase over the coming years.
Moreover, supply is typically constrained by the fact that roughly 95% of world cobalt production is a byproduct of nickel and copper mines, with the politically unstable Democratic Republic of Congo (DRC) containing half the world’s cobalt supply and representing the lion’s share of anticipated future cobalt supply (DRC’s 2007 output was equal to the combined production of cobalt by Canada, Australia and Zambia).
One of the most serious and unpredictable risks facing mining operations and investor interests is "country risk" - where the political and economic stability of the host country is questionable and abrupt changes in the business environment could adversely affect profits or the value of the company’s assets.
http://www.aheadoftheherd.com/Newsletter/Country%20Risk.pdf
And lets not forget about the recently signed $9 billion joint Congo-China venture in which China gets rights to the vast copper and cobalt resources of the North Kivu in exchange for providing $6 billion worth of road construction, two hydroelectric dams, hospitals, schools and railway links to southern Africa, to Katanga and to the Congo Atlantic port at Matadi. The other $3 billion is to be invested by China in development of new mining areas.
Like copper and nickel, the cobalt price has jumped up in the last two months. Cobalt has roughly doubled from its lows, from $11 per pound to $21 per pound, with one major Chinese supplier now offering at $23 per pound. Traders are suggesting the price could go higher in the near term as many end-users are still nervous about the fragile world economy and don’t want to buy long-term contracts; rather they would prefer to buy what they need, when they need it, on the spot market.
But unlike copper and nickel there is no transparent market for cobalt, this means right now speculators have no real influence on the market.
But soon there will be a globally transparent market for cobalt and molybdenum, when the London Metals Exchange (LME) begins trading contracts for the two metals in February 2010. The LME issued updated new guidelines on Monday of this week so suppliers can begin to meet LME specifications in time.
Cobalt contracts will be traded in one tonne lots. The cobalt market is relatively small @ 60,000 tonnes per year, compared to copper’s 15.7 million tonnes.
Cobalt demand is estimated to have fallen <3% in 2008 and is expected to decline further this year before recovering in 2010 said the Commodities Research Unit (CRU) Group at the recent Cobalt Development Institute (CDI) conference.
Prices have the potential to go higher because end-users in Japan, a key market, are reluctant to commit to long-term contracts turning instead to the spot market.
For investors, there are few ways to play cobalt, at least until the LME contracts come into place.
Two of the best in my opinion are OM Group (OMG-NYSE; $34) and Geovic Mining (GMC:TSX; $0.59/GVCM-OTCBB; $0.55).
OM Group produces hundreds of metal-based specialty chemicals and powders from such elements as copper, nickel and cobalt – especially cobalt. As the cobalt price has moved up sharply in the last month so has the OMG-NYSE stock.
Geovic is upstream cobalt – its cobalt is still in the ground. It is developing the largest primary cobalt deposit in the world in the African country of Cameroon. Two of the seven similar deposits that their 60%-owned subsidiary GeoCam owns, Nkamouna and Mada, have more than 1 billion pounds of cobalt combined between inferred and measured/indicated resources, with a significant increase anticipated this fall when an updated 43-101 report is released (based on a new, 54,900 meter drilling program). The huge scale of the asset gives investors a lot of leverage to a rising cobalt price.
Geovic has approximately US$59 million cash, or roughly its market capitalization. Not too bad, investors are getting all that cobalt for free!
The cobalt price is moving higher – and we know it’s not speculators. Over the last year global cobalt stocks became depleted. Buyers are indicating they want to return to “Just-In-Time” ordering in case the world’s economy falters again, and that, combined with supply disruptions from China, should mean the cobalt price will remain steady.
Price stability will encourage development of new cobalt uses. A new LME cobalt contract will also mean increased price stability and transparency for end users. Maybe its time cobalt reached your radar screen.
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Geovic Mining Corp (GMC) is committed to sustainable development and social responsibility. By this we mean that our long-term welfare is directly related to the welfare of the people and communities in the areas where we operate. In the end, these are the people who should be the main beneficiaries of our cobalt mining activities.
We expect to leave behind the capacity for a better future for our hosts. This commitment encompasses the following values:
GMC is also committed to excellence with regard to the environment. We recognize and embrace the concept that sound environmental management is essential for our business.
Understanding, minimizing and mitigating all environmental impacts, as well as using all resources prudently and efficiently, is critically important to GMC. We pledge to conduct our activities in a manner that safeguards all the resources under our stewardship, whether they are minerals, forests, water, land or air.
The best way to reduce the effects of our operations on the environment is to disturb as little of it as possible. We will implement sustainable development initiatives that meet present needs without compromising those of future generations.
In Cameroon, GMC is developing an understanding of how the interplay of social, ideological, environmental and economic factors affects the fragile balance of the country's ecosystem. GMC is developing its GeoAid (“Earth Aid”) program to ensure that sustainable and high quality environmental and socio-humanitarian standards are an integral and essential component of the Company's mining operation. This program is more fully outlined in the document "Geovic, GeoAid and the Environment."
Wade Nesmith Chairman | John E. (Jack) Sherborne Chief Executive Officer, Director |
David C. Beling Executive Vice President, Chief Operating Officer | Barbara A. Filas Executive Vice President, Corporate Development & Chief Administrative Officer |
William A. Buckovic Executive Vice President, Exploration, Director, Founder | |
Greg Hill Senior Vice President, Chief Financial Officer | Gary R. Morris Senior Vice President, President Geovic Mineral Sands |
Conrad Houser Senior Vice President, President, Geovic Energy | Alan W. Peryam Senior Vice President, General Counsel |
Andrew C. Hoffman, CFA Vice President, Investor Relations | |
Diane Hartnett Corporate Controller | Shelia I. Short Corporate Secretary |
Michael Goldberg Director | John T. Perry Director |
Robert J. (Don) MacDonald Director | Gregg Sedun Director |
Michael T. Mason Director |
Greg Hill Chairman | Richard Howe General Manager, Director |
Moger Jean Claude Ayem Director | David C. Beling Director |
Ambroise Ondoa Onana Director | |
Anita Efoua Mbozo'o Deputy General Manager |
|
Pierre-Marie Noah Procurement, Logistics | |
Patrick Holmes Finance, IT |
Corporate Information for | Geovic Mining | |
Corporate Head Office Geovic Mining Corp Telephone: 303.476.6455 Operations Office Geovic Mining Corp Exchange: TSX Exchange | Registered Office 2711 Centerville Road, Suite 400 Auditor Transfer Agent Email: service@computershare.com |
Know the Management | Know the News | |
http://www.geovic.net/biographies.php | http://www.geovic.net/news.php |
Cobalt is an element that has many diverse and critical uses. In most applications, substitution for cobalt yields lower product performance. Below are cobalt’s most common usages.
2007 Global Cobalt Use(1) | % of Market |
Batteries - Cell phones, computers, hybrid vehicles, portable tools, etc. | 25 |
Super Alloys - Turbine blades, mainly jet engines | 22 |
Chemicals - Includes pigments and dyes | 26 |
Wear Resistant Alloys - Hard facing and cobalt carbide | 12 |
Catalysts - Includes Gas-to-Liquid conversions | 9 |
Magnets - High performance applications | 6 |
Cobalt in rechargeable batteries is the fastest growing use, and notably in 2007 the percentage of cobalt use for rechargeable batteries rose to 25% of total cobalt demand from 22% in 2006. Nickel metal hydride and lithium-ion batteries both contain cobalt and are used in hybrid electric vehicles (HEVs), computers, cell phones, portable tools, audio/visual units, and numerous electronic devices. The fastest growing segment of battery applications is for HEVs, which reduce air pollution and fuel consumption by at least 50% compared to conventional vehicles. The HEV “plug-in” option is even more environmentally friendly, and includes an extra cobalt-bearing battery that can be charged from electrical outlets and achieve fuel economies that exceed 100 miles per US gallon. In the US, roughly one-third of all CO2 emissions come from transportation sources.
The Toyota Prius HEV was named 2004 Motor Trend Car of the Year and 2005 European Car of the Year. The one millionth unit was sold in April 2008, and Toyota estimates sales of one million hybrid vehicles annually "as early as possible in the 2010s". In the next few years, the Company plans to offer all Toyota and Lexus models as hybrids. General Motors, Ford, Daimler-Chrysler, Mercedes, and others are attempting to catch up with Toyota’s hybrid success. Nearly all current HEVs use nickel-metal hydride batteries that contain about 22 pounds of nickel and 3 to 5 pounds of cobalt. Lithium-ion batteries containing 5 to 7 pounds of cobalt and little or no nickel are expected to dominate future HEV markets because they charge in minutes rather than hours and offer many other economic and technical advantages. Global production of HEV’s in 2007 was about 400,000-500,000 units, and is estimated to increase to 8 million units by 2015(2), thereby increasing annual cobalt demand by nearly 22,000 tonnes/year. In 2006, the world produced 69 million conventional cars and light trucks, and is expected to produce over 80 million units by 2015.
Cobalt Supply and Demand
The cobalt market is dynamic but small in comparison with other base metals. Consumers purchase cobalt through negotiated agreements, bids, and open markets from producers, traders and to a lesser degree, government stockpiles and private inventories. Approximately 48% of the world’s 2007 cobalt mined was a byproduct of nickel from sulfide and laterite deposits. An additional 37% was produced as a byproduct of copper operations, mainly in the Democratic Republic of the Congo (DRC) and Zambia. The remaining 15% of cobalt mining came from primary producers.
Several new projects are deemed to be sufficiently advanced and financed to produce significant quantities of cobalt in 2009-10 (mainly as a byproduct), including those listed below. However, until that time cobalt demand is expected to significantly exceed production due to limited new production and the absence of stockpiles. Additional projects may also come on stream in the intermediate term, however political and logistical issues in the DRC may endanger the viability of some of the larger projects.
Major New Projects | Start Up Year |
| Annual Prod. |
Tenke Fungurume | 2009 | DRC | 4,000 |
Talvivaara | 2009 | Sweeden | 2,500 |
Goro | 2009 | New Caledonia | 1,500 |
Kamoto | 2010 | DRC | 1,000 |
Katanga | 2011 | DRC | 1,000 |
Camec | 2011 | DRC | 1,000 |
Nama | 2011 | Zambia | 1,000 |
Idaho | 2011 | U.S. | 1,000 |
Total | n/a |
| 13,000 |
Cobalt consumption in 1995 was only 24,000 tonnes, but grew to 60,800 tonnes in 2008, for a compound annual growth rate (CAGR) of 7.4% for the 13-year period.
Geovic's preliminary estimate for 2009 world demand is 52,600 tonnes, or a 13% decrease from 2008 demand, principally due to the impact of the global economic crisis in the first half of the year. On the supply side, Geovic estimates that 2009 cobalt production will fall by approximately 5% compared to 2008, to around 53,000 tonnes.
In the chart below, actual world supply and demand data from external sources are used through 2008, whereas the projections from 2009 through 2015 are based on an 11% CAGR (principally due to the "catch-up effect" following the aforementioned significant demand decline in 2009). The combination of production from existing mines and new production is expected to yield 10% CAGR between 2008 and 2015, however the aforementioned demand growth is expected to yield a relatively tight supply/demand balance during that period.
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Source: Actual supply and demand by USGS, The CDI and other independent research groups. Projections after 2008 were developed by Geovic. |
Roskill Consulting, an international group that researches mineral industry information, estimates growth in demand by 2011 in a most likely case to be 72,500 tonnes(3). However, this forecast could be considerably understated given the exponential growth in batteries for hybrid vehicles and new demand from emerging markets such as China and India.
Global cobalt consumption by country and the increase for the four-year period ending 2006 is shown below(4).
Tonnes Cobalt
Country | 2002 | 2006e | % Change |
Europe | 11,100 | 13,730 | 24 |
Japan | 7,250 | 12,300 | 70 |
China | 4,300 | 11,000 | 156 |
USA | 9,250 | 11,450 | 24 |
Other | 5,200 | 7,520 | 45 |
Total | 37,100 | 56,000 | 51 |
The table below shows approximate production of refined cobalt and reserves and resources by country.
Refined Cobalt Production in 2007 & Reserves(4).
Country | Mine Production | Tonnes x 1000 | Tonnes x 1000 |
Australia | 3,700 | 1,500 | 1,800 |
Brazil | 1,150 | 29 | 40 |
Belgium | 2,900 | ||
Canada | 5,650 | 120 | 350 |
China | 13,250 | 72 | 470 |
DRC | 600 | 3,400 | 4,700 |
Cuba | 3,900 | 1,000 | 1,800 |
Finland | 9,100 |
| |
France | 300 | ||
India | 1,000 | ||
Japan | 1,100 | ||
Morocco | 1,600 | 20 | n/a |
New Caledonia | 0 | 230 | 860 |
Norway | 4,000 | ||
Russia | 3,600 | 250 | 350 |
South Africa | 250 | ||
United States | 0 | 33 | 860 |
Uganda | 700 | ||
Zambia | 4,600 | 270 | 680 |
Other |
| 180 | 1,100 |
Total | 53,500 | 7,100 | 13,000 |
*includes reserves plus measured and indicated resources |
There are no published statistics on world use of cobalt scrap, but the USGS estimates 2006 U.S. scrap consumption was about 25% of reported US consumption.
Prices
Cobalt prices fluctuate significantly in response to world events and changes in the overall supply/demand balance. Historically, cobalt prices have had limited transparancy, although quotes can be found from sources such as Platt's Metals Bulletin and www.minormetals.com. In late 2009, or early 2010 the latest, the London Metals Exchange (LME) plans to launch the first-ever cobalt futures contract, which should materially improve such transparancy.
As of April 2009, the 3-year and 20-year average prices of 99.8% cathode cobalt are approximately $18/lb. and $28/lb, respectively.
Footnotes
Much of the project and cobalt market data in this report were obtained from the four sources below:
(1)The Cobalt Development Institute, www.thecdi.com.
(2) Credit Suisse Metals & Mining report, 04-02
(3) The Economics of Cobalt, 11th Ed., 2007 by Roskill Information Services Ltd., www.roskill.co.uk
(4) USGS website, http://minerals.usgs.gov/minerals/pubs/ commodity/cobalt/.www.sfp-metals.co.uk
References
Cobalt market data, publications and related services may also be obtained from other
sources, including:
Disclaimer
This document contains certain forward-looking statements and projections estimated by Geovic personnel regarding future production, metals markets, competition, capital spending, earnings, cash-flow, commodity prices, resources and other considerations. The statements are based upon Geovic’s current expectations and beliefs, and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those presented herein. Any use of this document is at the sole risk of any party that so relies.
Geovic Energy, a wholly owned subsidiary of Geovic Mining Corp. (TSX.GMC, OTCBB.GVCM), aims to become a major energy and metals mining company, targeting project opportunities in the U.S. and international markets.
The Company is developing uranium mining projects in the United States, having leased uranium properties in the Cheyenne-Denver Basin of northeastern Colorado and the Wyoming Red Desert Region, as well as gold/uranium properties in the Whetstone Mountains near Tucscon, Arizona, and three oil and gas projects in Wyoming.
Moreover, other mining interests are being pursued in various metals, mining, and energy markets worldwide.
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