Carabella Res Ltd Nsw CBLLF

Cobalt price

[lumpy13]

Wheaton and KBLT did the Vale Voisey Bay cobalt streaming deal when the cobalt price was at its peak.  Since then the price has dropped 60%, unfortunatley also reflected in KBLT's SP.   Medium/long term the cobalt price should rise - hopefully.  

The following was from the daily IKN email.

VANCOUVER, June 11, 2018 /CNW/ - Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is pleased to announce that it has agreed to acquire from a subsidiary of Vale S.A. ("Vale") (NYSE:VALE) an amount of finished cobalt equal to a fixed percentage of cobalt production from the Voisey's Bay mine (the "Cobalt Stream"). Wheaton will pay Vale upfront cash consideration of US$390 million upon closing of the Cobalt Stream. In addition, Wheaton will make ongoing payments of 18% of the Metal Bulletin market price ("cobalt spot price") per cobalt pound delivered.  

[BarnFind]

Lumpy13.  I think that you are right that in hindsight the Vale deal timing was poor and they paid too much.  However, it is still a valuable asset and starting in 2021 will start to provide considerable revenue to Cobalt 27.  In general I see Cobalt 27 as a good opportunity since it is being valued at only cash and physical cobalt.  They are doing deals now at current prices

[lumpy13]

Barnfind:  I agree with you, it was horrible timing.  Just been frustrating as I keep averaging down as the company is so cheap.  But, with the cobalt price continuing to fall, so does the SP. Medium/long term I'm positive about cobalt and KBLT.  

[BarnFind]

I too am averging done, but each time I do the SP drops and I should have waited.  Now cobalt is at $16.3 US, back to mid 2016 prices.  Production of cobalt, although limited, is outpacing its use.  This wont last as Evs and grid storage increases, but for now there is little to drive up cobalt prices. I wish I knew when cobalt, and thus Cobalt 27, will bottom.

[lumpy13]

BarnFind:  You and I have the same approach.  KBLT should rise nicely when cobalt prices rise (and macro indicators are good). One of my investment strategies is to find good companies and average down if the price falls.  It's worked nicely for me.  (That being said, KBLT has played the hustle game a bit too much in order to grow their company.  They were so in to

[BarnFind]

Lumpy-13 I appreciate your suggestions and will look into them.  Like you said, look for good companies and average down as SP falls so long as their fundamentals still make sense.