RE:RE:FCC big upward move coming imho, eomGoldfather wrote: sure hope so !.... but wondering how much dependence is on the Price of Cobalt ? as i have a feeling that FC could do great things, but if CO stays low, the SP may not go anywhere... comments ?
GF, the current Co price is well below 2010 levels. It was a significantly over-done run-up (market speculators got over-excited about the future supply/demand picture). There was some serious stockpiling which drove prices higher as well. The current correction is also over-done. Buyers are sitting on surplus, especially China. Over the coming few months and years, as China works through their stockpiles, and the market stabilizes, the price is almost certainly going higher. As with most commodity booms, future supply crunches are recognized way before the actual supply deficit occurs. The market is usually way too early to the party and overdoes the run-up. Then, inevitably, the pullback is just as drastic. As a sensible investor, it’s important to always monitor the supply/demand picture and never lose sight of this. Fortunately for FCC, they are in a fantastic position (if they can get the refinery up and running again). Most of the other cobalt juniors have essentially been wiped out. FCC has a fantastic, fairly advanced-stage property at Iron Creek. But more importantly, they have what nobody else in the space has - the only permitted refinery on the CONTINENT capabale of producing battery grade Cobalt. It gives them a MASSIVE advantage and should see them through this little blip (as their completion dies off). I’m sure you’ve heard the saying “the cure for low prices is low prices”. Low prices kills exploration and leads to even deeper supply deficits in the future. When the price eventually does come back, for explorers/producers, it’s like trying to turn a giant tanker ship around. In mining, the permitting/drilling/construction takes A LONG time and most end up being way too late to the party. FCC should be right on time. GLTA