RE:Cobalt Price Continues To FallI think that the general sentiment is for continuing low prices in the near term as last year's price increase brought out increased supply (especially artisano mined or from scrap). But, inversely, with the lower price today, artisano mining and scrap production is drying out. So, until the market sees/feels falling production, CO prices will remain low.
Medium/Long term the outlook is generally positive, as the renewable space is expected to have high growth and that replacement of CO in LI batteries is still unproven (but if it happens...).
Didn't agree with all of it, but thought the following article has some good observations:
https://investingnews.com/daily/resource-investing/battery-metals-investing/cobalt-investing/cobalt-outlook/
KBLT did some stupid deals, buying at the top of the market, and funding it with stock issuances. But it was easy money to raise, so you can also understand why they didn't mind overpaying for assets. It built the company and medium/long term these royalties and streams will kick in and - even at a low CO price - cash flow generation should be attractive.
As an investor, who have averaged down a few times, it's been a painful ride so far. But, my sense is that KBLT has bottomed out as the market accords little value to the company's streams and royalties, combined with a negative outlook for CO prices.
As such, a new investor can buy into KBLT at an arguably cheap price (unless I'm wrong and, that in spite of low CO prices, new production will be brought on line). It seems nonsensical that investors/lenders will fund new production when the CO price is so low. Once supply starts drying up, market perception will change, the CO price should rebound creating a demand for KBLT stocks. At least, that's my expectation (and hope).