TSXV:FCO.H - Post by User
Comment by
tresspaseron Apr 15, 2016 8:20am
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Post# 24769983
RE:A simple question or two
RE:A simple question or two
"Overall, cobalt demand is projected to grow from 87,383 tonnes to 113,725 tonnes between 2014 and 2018. Cobalt supply is projected to grow from 91,577 tonnes to 100,778 tonnes over this same time frame". Demand is anticipated to overtake supply this year. At the same time we also have 350,000 Tesla III Orders, 3 or 5 giga-size mega battery factories, surge in battery storage usage world wide, and probably 20 EV's coming to the market. Last time Demand surpassed supply Cobalt shot to $50 (and FCO to $7.00).
Other things to consider...
1. People are taking Climate Change seriously, and there are very real concessions being made by every world power toward EV's. China for example is exploding in EV's and have may even over taken the US.
2. Cobalt is mostly a secondary metal, the result of mining Nickle and other metals. However, the prices of these are at historic lows, and mines are shutting down... at the exact time they would need to start up to handle the Cobalt demand.
It's a perfect storm for Cobalt.
This is not all good news however. If we Cobalt surges like it did in 07', EV's will be forced to migrate to non-cobalt solutions. So expect a surge in Cobalt prices by the end of this year, and to continue through 2020.