Profit Off Once in a Lifetime Shift Away From Internal Combustion Engine

I am behind in my publishing schedule due to the unexpected Hurricane Irma and the onset of the Jewish New Year.  Now that has passed I plan on publishing content on a more regular basis with update CEO interviews and new charts

For some time now, I have been one of the early proponents of investing in cobalt because of its crucial role in lithium-ion batteries used in electric vehicles.

Recently, I learned that major automaker Volkswagen is now looking to secure long-term supplies of cobalt, as they are the latest manufacturer to get on board with the rapidly emerging electric vehicle market. Volkswagen is the largest automaker in the world and, like Tesla, they are keen to carve out a piece of the electric vehicle market. The company plans to introduce over 80 electric vehicles in the coming years as part of a goal to sell more then three million battery-powered vehicles a year by 2025.  All I can say is good luck because it won’t be easy to secure supply of cobalt.

More broadly, governments around the world are enacting stricter regulations against pollution – a move that will drive major auto manufacturers into the electric vehicle market as well. In fact, numerous countries have declared their intention to stop the sales of gasoline-powered vehicles altogether in the near future.

Demand for cobalt reflects its critical role of extending battery life of lithium-ion batteries, giving manufacturers the ability to offer batteries that can last nearly a decade.  As a result, cobalt’s price has tripled over the past year and a half moving from $10 to $30 US per lb.

Moreover, all of this demand brings issues with the cobalt supply chain into focus. Currently, much of the world’s supply comes from the Democratic Republic of the Congo – a geopolitically unstable region plagued with human rights violations in their mining industry (including child labor). As well, they cannot produce enough cobalt to meet projected demand placing American and European manufacturers under pressure to secure supplies elsewhere.

How do we profit off of this paradigm shift from internal combustion engines to electric-powered vehicles? Invest in cobalt exploration companies with top management teams, financial backing, and promising cobalt assets.

For months I highlighted #firstcobalt $FCC.V $FTSSF, whose goal is to create the largest pure play cobalt development company.  They are on their way of doing that, amassing 3k hectares of land in Cobalt, Ontario, including a former, high-grade cobalt mine that produced over 3 million pounds of cobalt.

Recently, $FTSSF announced news which should really draw attention to the upside potential of their project.  They took samples from the historic muck piles and tailings of a past producing mine on their property, and the assays showed extremely high-grade cobalt.

Trent Mell, President & Chief Executive Officer, commented: “This is now a high priority target that will require a more detailed drill plan and more initial holes compared to the on-going drill program at the Keeley and Frontier mines. There are real benefits to sampling mined material previously viewed as waste rock and it has given us quick insight into how
to prioritize our drilling.” In addition to this news there are assays pending from drilling 4k meters.  I think there could be a lot of news with First Cobalt $FCC.V $FTSSF in the next few weeks.

In addition, to #firstcobalt $FCC.V $FTSSF, I just had a conversation with Dr. Andy Rompel, CEO of #CobaltPowerGroup $CPO.V $CBBWF, who recently announced a strategic alliance with Hochschild Mining, a mid-tier precious metal producer.  They also are in the process of acquiring Canadian Cobalt’s 7,400 hectares, making them one of the largest landowners in the Cobalt, Ontario district along with First Cobalt.  I wouldn’t be surprised if the entire district eventually consolidates due to the silver and cobalt potential.

Dr. Andreas Rompel, President & CEO commented, “the acquisition of the Canadian Cobalt properties presents a rare opportunity to increase our land holdings in the Cobalt Camp region, an area with a robust mining history and known high-grade silver/cobalt mineralization.”  I will be meeting with Cobalt Power Group at the New Orleans Investment Conference #NOIC2017 next week where they will be the only cobalt presenting in front of an all star lineup.

Finally, I recently spoke with former Executive of BC Hydro Greg Reimer about the growing role of renewables.  Mr. Reimer has joined Lico Energy $LIC.V $WCTFX a junior cobalt explorer.  Its a testimony to the quality of this early cobalt player to attract this level of expertise in power distribution in Canada.  He was responsible for the “planning, design, operation and maintenance of BC Hydro’s extensive transmission and distribution network located within the province of British Columbia.”

One thing is clear about Mr. Reimer’s move to Lico he believes the Lithium Ion Battery is a game changer for the vehicle market and for energy storage.  Its important to note the experience of Mr. Reimer which was written in Lico’s President letter to shareholders. “At BC Hydro, Greg was responsible for approximately 2,300 employees who plan, design, build, operate and maintain the systems and assets needed to deliver electricity safely and reliably to BC Hydro’s four million customers. In total, Greg was accountable for $580M in annual capital investments in transmission and distribution infrastructure, and $325M in annual operating and maintenance expenditures. In his senior executive capacity, Greg brings a wealth of operational experience and strong leadership ability.”

In addition, Lico has a deal with Glencore, one of world’s largest cobalt miners on a property in Canada.  Drilling is ongoing and could be exciting.

I know many of you reading this will be in New Orleans next week at one of the best investment conferences and I look forward to meeting and discussing lithium and cobalt with you.  Make sure to contact me on twitter, email or linkedin so we can meet up to discuss the markets.

Disclosure: I own securities in these companies and they are website
sponsors.  This means I am biased and have a conflict of interest as I
could benefit if the share price increases.  This contains forward looking
statements which may not come to fruition due to the risky nature of junior
mining development.  I may buy or sell shares without notice.  Article is
based on public information but may contain inaccuracies.  Please do your
own due diligence as I am not a financial advisor.


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