An article from Canaccord should be of interest to ABR
shareholders!
ABR has a major stake in" The Buckingham Graphite Property consists of 18 CDC claims acquired through an option agreement with Cavan Ventures Inc. (15 CDC claims) and through staking in August 2016 (5 CDC claims). The Property is readily accessible by roads from the village of Buckingham and is 100% situated on private land"
Canaccord explores the impact on cobalt, an increasingly important material in the Li-B material supply chain. Li-B chemicals/feedstocks are the main markets for cobalt (~50% in 2016 vs lithium at ~40%, graphite ~9%), with the metal playing an important role in improving Li-B performance (battery life, energy density, stability). Based on the increasing use of higher performance batteries in EVs and consumer electronics, combined with Zaunscherb’s modeled growth in Li-B production, he estimates cobalt demand could almost double to 203kt by 2025. Thus Zaunscherb expects the supply/demand balance to tip into deficit from 2017 through 2025 supporting increased cobalt prices from the current US$25/lb to US$34/lb by 2025. Some key points to note: 1) Cobalt prices rise - up 120% (LME) in the last 12 months – speculation or fundamentally driven? 2) Increasing demand to be driven by a significant increase in Li-B output to support the growing EV and consumer electronic markets; 3) Battery chemicals already consume half of the world’s cobalt – Zaunscherb estimates this will increase by half again by 2025; 4) Even factoring in the emergence of higher nickel: cobalt ratios in some Li-B’s and the impact of recycling, Zaunscherb forecasts demand to increase by +90% to 203kt by 2025; 5) Supply side has extreme concentration risk with medium-term project pipeline looking thin; 6) Zaunscherb forecast market deficits to persist for the foreseeable future, leading to continued upward trends in pricing."
As stated in a PR of April 19, 2017, ABR has indications of a possible major Graphite holding
“We are extremely pleased with the conclusions set out in the NI43-101 report and the conceptual model for the mineralization which will guide our exploration team for the next steps of the project. Further exploration works on the 1.5 km long conductor should initiate a definition drilling program for resource calculation purposes.”
