RE:RE:Without the Mill When they acquired the property, it came with a mill
Globe says Cobaltech a rare cobalt mining junior play
2017-03-22 07:39 ET - In the News
The Globe and Mail reports in its Wednesday, March 22, edition that AlphaNorth Asset Management manager Steven Palmer recommends buying small-cap Cobaltech Mining (29 Canadian cents). The Globe's Shirley Won writes that Cobaltech shares have a 52-week range of two Canadian cents to 45 Canadian cents. Mr. Palmer says this mining junior is a rare pure play on cobalt, a byproduct in silver and copper production. Cobalt demand, however, is growing, particularly for batteries in electric cars, notes Mr. Palmer. He notes further that prices have surged to about $24 (U.S.) a pound from $10.80 (U.S.) at the start of 2017 amid news that some hedge funds are stockpiling the metal. Sixty per cent of the world's cobalt comes from the Democratic Republic of the Congo, but political instability and reports of child labour have buyers looking elsewhere. Cobaltech last fall acquired a past-producing silver and cobalt property near Cobalt, Ont., and will need to spend more than $2-million (U.S.) to get the mill back into running condition, says Mr. Palmer. While the plan is to process the tailings, Cobaltech is still a speculative play, says the AlphaNorth stockpicker.