Fortune Minerals Ltd T.FT

New Thoughts on NICO

[MoneyMan123456]

Check out this article from bloomberg (Feb 22, 2022,  Cobalt Powerhouse Doubles Down on Nickel).

I believe the reason you haven't seen more interest in NICO is because no one is really sure what the Cobalt demand is going to be 4-5 years down the road when NICO could hypothetically come on-line.  Ideally they would be producing now, when prices are roaring, but that ship has sailed.

Given the scarcity of Cobalt, and the rise of electric car battery demand, it seems assured that new technology will be developed that minimizes Cobalt requirements.  This is a big risk for investors.  That, coupled with the terrible mining environment is the NWT makes it hard to find a partner.

Nico may be able to take advantage of the impending closure of the Diavik Diamond Mine (2-3 years down the road) and purchase mining equipment, crushers, drills, vehicles, structures, pipelines, processing equipment, spares, etc. for pennies on the dollar.  Saving 100 million on construction costs could be a difference maker.

Overall though, Fortune needs to put together a coherent strategy and update the FS.  IMHO, management appears to have done well over the years, but shareholders....not so much.

[Allman]

From many indications, the demand for cobalt will be growing and robust for years if not decades to come. It's use goes far beyond Li-ion batteries and even new solid state battery designs require cobalt. I suspect that one of FT's issues is the amount of annual cobalt sulphate they plan to produce and battery and car manufacturers seeking much more. My belief in this is rooted in FT

[red]

Good thoughts! 

[MoneyMan123456]

Good points all around, however I believe that scarcity and necessity will drive research to eliminate cobalt from lithium ion batteries (largest use by far of Cobalt).     From energy.gov (April 6, 2021)  "the U.S. Department of Energy (DOE), through the Vehicle Technologies Office, has committed to a multi-year, multi-thrust program to address all the scientific and

[Allman]

There are initiatives to reduce the use of cobalt from lithium ion batteries but not necessarily to eliminate it and considering the exponential growth of EV's, fractional use of cobalt in lithium ion or other type batteries will still amount to a significant demand. For that matter, it could be argued that if FT's 1.8k t/y of cobalt sulphate wasn't sufficient for a battery or