RE:RE:local cobalt stocks tanking...why?The Telsa analysist makes sence, I read too they are in substancial fiscal problem.
This should not effect cobalt prices at all and hasn't, but of course a sell off of mining stocks happens despite record prices.
I firmly believe that Juniors are not highly valued because of the years it takes to get from Drilling to production in Western Juristrictions. Drilling, Phase 2 drilling, resource estimates, pre-feasibility, Environmental Impact studies, pre-feasibility, feasability, pre-construction, construction decision, construction. It takes years and lots of money. Once in production your realatively safe.
In third world corrupt countries you can go from drilling to production in 18 mmonths and then the fun starts like rules, taxes, mining liscences, nationalization is always a possibility like in the Congo now.
IMO majors are not buying up cobalt juniors because unlike Gold that has been real currency for thousands of year, cobalt is unstable, if EV's do massivly rise, costs of copper Nickel prices go up as well and production increases which pumps out more of the by product cobalt.
Cobalt will always be needed, but Governments are putting money into technolgy that may replace cobalt in rechargable batteries. I believe that this will take years, if at all, but Majors are not currently jumping into Juniors.
I have a near producer with all permits in hand and 120 million already spenton infrastructure in a safe juristiction that is languishing as well, I thought that a complete buy-out or off-take agreements would propell the stockprice, but it is stalled and some unexplainable moves by Management.
All that being said, Lico has great cobalt properties and could make a prudent investor money. Commited management with proven success and some move by Glencore would give Lico a fair evaluation, but for now, too much uncertainty, a management that seems dysfunctional and inexperienced means that lower prices will probably be ahead short term. Clarification and transparency are needed now. Clear some thing up. We know the cobalt is in the ground. Glencore knows that too, they should lift a finger to help.