Cobalt – The Boom is Just Starting (February 15, 2017)

by FI Fighter on February 14, 2017

in Cobalt, Cobalt Updates

The impending Clean Energy Boom… It’s starting to ramp up again… somewhat in stealth… It’s still very early days, but one green metal that I am keeping extremely close tabs on is cobalt.

Just as recently last last September, cobalt was trading for no more than $12/lb… It’s now at $19.28/lb… and setting new 52 week highs seemingly on a daily basis…

The following cobalt chart (priced in USD/lb) looks about as bullish as any that I have ever seen before in my life…

From InfoMine.

Here’s another cobalt chart (priced in USD/tonne), showing the rise from ~$25,000/t to north of $42,000/t in a span of less than half a year (from September 2016 to February 2017)…

From London Metal Exchange.

And the crazy thing is this party in cobalt is probably just getting started!

How are some of the cobalt stocks doing, in comparison to the underlying metal?

Take a look for yourself… Here’s one cobalt company I own, eCobalt Solutions (ECS.TO/ECSIF).

ECS.TO share price performance over the last year, up 980%!

Epic…

But like I always joke with my friends, “Until I see Elon Musk dancing and singing on stage, I know that the masses are still asleep at the wheel…

In other words, until the Tesla Model 3 hype returns with a vengeance (and it will at some point this year, I’m almost certain of it), we really haven’t seen anything yet! As I believed last year (and still do today), the major growth driver behind the upcoming clean energy revolution will emanate predominantly out of China, but it will take a sexy story like Tesla to get the momentum (hype) really moving for the mainstream…

As such, I’m currently super bullish on green metals such as the following:

  • Cobalt
  • Lithium
  • Copper
  • Nickel
  • Graphite (to a much lesser extent)
  • Etc…

No doubt, I am absolutely the most bullish on cobalt

Consultants CRU Group say electric car and plug-in hybrid vehicle sales could hit 4.4 million in 2021 and more than six million by 2025, from 1.1 million last year. 

By 2020, 75 percent of lithium-ion batteries will contain cobalt, whose properties allow electric cars to extend their range between charges, according to eCobalt Solutions, which produces battery grade cobalt salts.

Supply vs. demand… Investing 101… The reality of the current market environment should bode exceptionally well for cobalt prices, moving forward…

And right now, I’m doing my best to research into cobalt stocks… So far, I’ve only got a small position in eCobalt Solutions, and I’ve been pretty much kicking myself everyday for not buying more shares last fall when I first started monitoring cobalt prices on a daily basis!

 

The Clean Energy Boom is fast approaching… At this point, nothing can stop it…

 

Are you ready for what should be a most epic ride?

 

I know, I don’t feel like I’m well positioned… yet…

 

Personally, I’ve got a ton of lithium shares, but somehow I managed to neglect the one metal that is without a doubt the most critical of them all in the lithium-ion battery supply chain…

 

Doh!

 

Please note: As ALWAYS, please do your own research and due diligence… I don’t offer any kind of investing advice, ever… I’m simply sharing with readers what I’m doing with my own money…

 

Oh well, live and learn… I hope I’ve still got some time to make some moves before this train (electric) leaves the station for good…

 

 

Fight On!

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{ 9 comments… read them below or add one }

1 Buy, Hold LongNo Gravatar February 14, 2017 at 4:49 pm

Very nice write up. Looks like it really could be the future of renewable energy. Just need to be careful that this is not the only defining factor in making this stock worth while.

Reply

2 FI FighterNo Gravatar February 15, 2017 at 1:14 am

Buy, Hold Long,

Thanks! Clean energy should be an exciting space for investors over the next few years, decade.

Without the boom, most of these stocks wouldn’t be worth investing in, probably…

Cheers!

Reply

3 JanNo Gravatar February 14, 2017 at 7:58 pm

Thanks FI Fighter. Which other cobalt stocks do you have your eye on?
Fortune Minerals looks interesting. Are you waiting for a pull-back to add (if there is one…hopefully)?

Reply

4 FI FighterNo Gravatar February 15, 2017 at 1:17 am

Jan,

I’m still doing my research, but here are some names out there:

Barra Resources (BAR.AX)
Nzuri Copper (NZC.AX)
Corazon Mining (CZN.AX)
Katanga Mining (KAT.TO)
Cruz Capital (CUZ.V)
Cobalt Blue (COB.V)
Clean TeQ (CLQ.AX)

Cheers!

Reply

5 FinanzrNo Gravatar February 15, 2017 at 12:59 am

Cobalt could be an exciting place to be in the next months.
I never could wrap my head around ECS though.
Instead I built a small position in Katanga and Ardea.
Katanga seems to be extremely risky though – so my plan is to free ride this thing as soon as possible.

Reply

6 FI FighterNo Gravatar February 15, 2017 at 1:19 am

Finanzr,

Thanks for sharing your thoughts! Katanga and Ardea have sure exploded so far this year!

Free rides are never a bad thing! 🙂

Best wishes!

Reply

7 alNo Gravatar February 19, 2017 at 9:57 am

Glencore just purchased two large mines from Dan Gertler, owner of the Fleurette Group, mines located in the DRC (Congo – katanga region, south east of Congo near Zambia). They are both huge copper and cobalt producing mines. DRC is the largest Cobalt producer in the world by far (up to 60 000 ton per year historically). If Glencore can manage to get those two mines operating at full capacity again (a big if, I have lived in Congo for 18 years, but in Kinshasa, and the place is the most corrupt and less organised one you can think of), then the current cobalt shortage will turn into a global cobalt surplus or at least a managed global cobalt supply with no real shortages, excepted the ones orchestrated by Glencore and Co during a copious Swiss chandelier dinner… I am just saying, keep your eyes peeled and be aware that big players are muscling into the cobalt sector, so hedge your investments accordingly, to keep your shirt down the road. Maybe buy some Glencore, it is a decent commodity producer located in safe Switzerland…

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8 ChillywitNo Gravatar February 19, 2017 at 1:54 pm

My interest in cobalt was piqued last year too when I came across a picture of some mud covered, shirtless, guy in a 3rd world country mining cobalt from a narrow vertical shaft he dug himself (think the opening scene from the movie There Will Be Blood). That told me all I needed to know about the supply/demand profile for cobalt. I’m looking forward to your analysis of cobalt stocks.

Reply

9 AlecNo Gravatar March 6, 2017 at 7:20 pm

Hey Fifigther

Just subscribed to your site, love the write ups. Cobalt seems to be the place to be atm especially with the situation in DRC. Seems like we are getting a bit of a pull back atm before the run continues! I see you’ve listed a few stocks although I’d like to bring to your attention ARL.AX, has a big potential to run great Nickel Cobalt play! Please let me know your thoughts.
Thanks

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